New Delhi, India — February 1 (ANI): In response to U.S. tariffs, Union Finance Minister Nirmala Sitharaman on Sunday proposed reducing the tariff rate on all dutiable goods imported for personal use from 20 percent to 10 percent.
In line with the government’s objective of promoting exports and supporting the seafood industry impacted by U.S. tariffs, Sitharaman proposed increasing the limit for duty-free imports of specified inputs used for processing seafood for export from the current 1 percent to 3 percent of the FOB value of the previous year’s export turnover.
“I propose to increase the limit for duty-free imports of specified inputs used for processing seafood for export from the current 1 percent to 3 percent of the FOB value of the previous year’s export turnover. I also propose to allow duty-free imports of specified inputs, which are currently available for exports of leather or synthetic footwear, to exports of shoe uppers as well,” the finance minister said.
Providing a boost to the defence sector, Sitharaman announced an exemption from basic customs duty on raw materials imported for the manufacture of aircraft parts to be used for maintenance, repair, or overhaul by units in the defence sector.
The finance minister also proposed basic customs duty exemptions for capital goods used in the manufacturing of lithium-ion cells for batteries and for processing critical minerals.
“I propose to extend the basic customs duty exemption on the import of goods required for nuclear power projects until 2035 and expand it to all nuclear plants, irrespective of their capacity,” Sitharaman said.
She added, “I propose to extend the basic customs duty exemption given to capital goods used for manufacturing lithium-ion cells for batteries to those used for manufacturing lithium-ion cells for battery energy storage systems as well. I also propose to exempt basic customs duty on the import of sodium antimonate for use in the manufacturing of solar glass. Further, it is proposed to provide basic customs duty exemption to the import of capital goods required for the processing of critical minerals in India.”
The customs duty exemptions and export support measures follow the decision by U.S. President Donald Trump to impose 50 percent tariffs on imports of Indian goods, affecting textile, seafood, and other exports.
Sitharaman also proposed measures to support mineral-rich states, including Odisha, Kerala, Andhra Pradesh, and Tamil Nadu, to establish dedicated rare earth corridors.
The finance minister presented the Union Budget for a record ninth time. (ANI)
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