Finance Minister Nirmala Sitharaman stated that rationalizing customs duties aims to boost the Indian economy and foster self-reliance by making raw materials cheaper for MSMEs, ensuring the easy availability of essential minerals, and enabling Indian companies to export high-value products.
Key Budget Announcements on Customs Duties
- The CBU duty on motorcycles above 1600cc has been reduced from 50% to 40%, benefiting companies like Harley-Davidson.
- Import duties on other motor vehicles have been lowered, but exact effective rates remain undisclosed.
- The policy focuses on strengthening the ‘Viksit Bharat’ (Developed India) vision, balancing investments in health, nutrition, and education.
Ahead of PM Modi’s upcoming U.S. visit, this move is seen as an effort to encourage foreign investment and trade partnerships. Sitharaman also dismissed opposition claims that the budget was politically motivated.
