Amitabh Kant urges to scrap import duties for exported goods

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Amitabh Kant urges to scrap import duties for exported goods

Amitabh Kant urges to scrap import duties for exported goods

Industry News
Nov 21,23

Kant suggested that while import duties on products intended for domestic consumption, such as furniture and food items, could be increased, maintaining competitive pricing for exports is crucial.

Amitabh Kant urges to scrap import duties for exported goods

G20 Sherpa Amitabh Kant emphasised the need for India to eliminate import duties on raw materials used in the production of goods destined for export. Kant asserted that for India to play a vital role in global value chains, it must engage in the importation of numerous items essential for the manufacturing process within the country. He advocated for imposing zero duty on these components to ensure the affordability of the final product.

Drawing on his experience as the former secretary of the Department for Industrial Policy and Promotion (DIPP), Kant suggested that while import duties on products intended for domestic consumption, such as furniture and food items, could be increased, maintaining competitive pricing for exports is crucial.

Addressing the complexity of providing tax incentives to attract companies like Tesla to manufacture in India, Kant acknowledged the challenges associated with the importation of fully-built electric vehicles (EVs). India currently imposes substantial duties ranging from 135% to 140% on such imports unless the vehicles are disassembled and reassembled within the country.

Kant expressed the government's aspiration for Tesla to manufacture in India, proposing a roadmap that includes a specified period of favourable duty terms, contingent upon Tesla establishing manufacturing operations in the country. Despite Tesla's desire to test the market for three years and seek equivalent duties to locally assembled cars, Kant emphasised the importance of laying out a strategic plan.

Looking ahead, Kant envisioned Tesla producing EVs tailored for the Indian market, with the potential for exportation worldwide. Recent media reports indicated that the Indian government is formulating an EV policy that could grant international car manufacturers concessional rates for importing battery-powered vehicles, provided they commit to eventual in-country production.

Highlighting the nascent state of India's electric car market, which constituted only 1.3% of total passenger vehicles sold last year according to BloombergNEF, Kant acknowledged challenges such as high costs, limited options, and insufficient charging infrastructure hindering the widespread adoption of EVs in the country.

Source: knnindia.co.in