Sources have said that the upcoming budget would be domestic friendly with the union government considering hiking import duties for items such as smartphones, electronic components and appliances, etc.
This is keeping in line with the Government of India’s campaign for a self-reliant India and promotes indigenous manufacturing. As discussions are not public, sources declined to comment further.
Industry analysts said that the government plans to increase revenue from $2.7 billion to $2.8 billion with this move to provide a breather to the country’s economy which was severely stung by the Covid-19 outbreak, lockdown and the general slowdown of economy.
Finance Minister Nirmala Sitharaman is expected to unveil India’s new budget on February 1 which will come into effect from the new financial year that starts on April 1.
However, none of the decisions are finalized yet and sources said that there may still be last minute changes.
The union government had last year announced various stimulus measures to promote India as a destination for local manufacturing and the union budget is expected to promote it further, industry analysts feel.
