The government on Monday proposed to impose import duty on components of mobile phones and chargers, to enhance local value addition. Finance Minister Nirmala Sitharaman announced a review of 400 exemptions in customs duty including those applicable on the mobile devices segment. "For greater domestic value addition, we are withdrawing a few exemptions on part of chargers and sub-parts of mobiles. Further, some parts of the mobile rate will move from nil rate to moderate 2.5 per cent," Sitharaman said.
She added that the custom duty policy must have twin objectives of promoting domestic manufacturing and helping India get on to the global value chain and export better.
"The thrust now has to be on easy access to raw materials and exports of value addition," Sitharaman said.
Sitharaman presented the Union Budget 2021-22 on Monday, which was approved by the Union Cabinet headed by Prime Minister Narendra Modi earlier today.
Sitharaman, who had in her first budget in 2019 replaced leather briefcase that had been for decades used for carrying budget documents with a traditional red cloth 'bahi-khata', had earlier this month stated that the budget for the fiscal year beginning April will be "like never before".
It has to be a vision statement, a roadmap to get the world's fastest-growing major economy back on track.
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