Is the central government ready to hurt the people with the upcoming budget? According to the reports coming out, the answer might be yes. It seems that the Modi government will give a shock to the common man in the budget to be introduced on February 1.
The central government allegedly is planning to increase the import duty on about 50 types of goods. It is expected to increase the import duty by 5 to 10 percent. According to reports, the central government will increase import duty on smartphones, electronic components, and appliances.
According to reports, the central government has taken this decision with the aim of promoting manufacturing in the country in line with Atmanirbhar (Self-reliant) India. The decision by the Modi government is likely to generate additional revenue of Rs 20,000 crore. It can boost up revenue amidst the pandemic-driven slump that has stung the economy.
Raising the import duty has the potential to push up the prices of a wide range of products, from smartphones to TVs. It could impact furniture and electric vehicles, potentially hurting the likes of Swedish furniture maker IKEA and Tesla, which is planning to launch its cars in India this year. The list of items likely to attract steeper duties is set to include appliances such as refrigerators and air conditioners too. Last year too, the central government increased the import duty on various items by up to 20 percent. Nirmala Sitharaman will present the Union Budget on February 1, the government's annual federal budget for the 2021-22 financial year, which begins April 1.