In this budget, the government is preparing to increase import duty. According to media reports, the government can increase import duty in almost every sector. Experts say that the government is doing this because the government wants to give a boost to domestic manufacturing, while some experts say that if the government increases the import duty in the budget, then its economy is going to suffer. Experts say that increasing import duty at this time is not in any way right for India’s economy.
The government is expecting a revenue of 20000 crores due to increase in import duty. The government believes that if the government increases import duty from 10% to 18%, then the government will get more revenue from it. Let us tell you for the information that due to the recession, the fiscal deficit of the Government of India has reached 15%. In such a situation, there is no other way to increase import duty with the government. In such a situation, the government can increase the import duty through the budget.
Why does the government want to increase import duty in the budget
The government believes that India’s fiscal deficit continues to grow. In such a situation, the government needs to increase revenue. In view of this, the government may decide to increase import duty in the budget. According to media reports, the government may increase the import duty from 10% to 18%.
The government’s fiscal deficit continues to grow. On the other hand, due to lack of demand in the economy, the government’s revenue is suffering heavily. Recently there was a report from Bloomberg. In this report, it was said that the government has lost about Rs 600,000 crores. In such a situation, it has become necessary for the government to increase revenue now.
The same experts say that the government will not directly increase the import duty in the budget. The government can say in the budget that we want to encourage domestic manufacturing. That is why import duties are being increased. Let us tell you for information, till 2014, the government is continuously reducing import duty. But since 2014, the government has been continuously increasing import duty. So even if the import duty is increased by 10%, it will be the heaviest import duty ever. The US has also been critical of India’s import duty policy in the past.
What will be the loss for you due to increase in import duty
If the government decides to increase import duty in the budget, then how will it affect you? If you want to buy products from companies that do not do their manufacturing in India. The component imports from outside for its manufacturing. Products from such companies can be expensive. Which includes cars, cosmetics, tires, mobile phones, imported garments, textiles. In which things are expected to be expensive.
If the government increases the import duty, then your annual budget can also go wrong. Everything you buy throughout the year is expected to be expensive. Companies already increase the price of their product before the budget. In such a situation, if the government increases the import duty in the budget, then even after the budget, companies can increase the prices of their products. Recently there was news that all the automobile companies have increased their car prices from 30000 to ₹ 34000. In such a situation, it will be interesting to see what the government decides about import duty in the budget.
If you want to buy any product for yourself, we would recommend that you buy the product before the budget. Especially products that are much more expensive. If you want to buy a car home or any important thing, you can buy it before the budget. After the budget, many things are expected to be expensive.
Raising import duty is not right for domestic economy
India’s economy is currently reeling from recession. India’s economy has been in minuscule in the last two economic years. In such a situation, if the government decides to increase import duty at this time, then the demand may decrease even more. In such a situation, India’s economy may get caught in a deep recession in the coming times. If the Indian economy has to be reformed again, the government will have to remove the import duty. But if the government increases the import duty, then the demand in India’s economy may decrease even further. In such a situation, it can be more difficult for companies in the coming days.
To tell you for information, the government is constantly announcing a relief package to get the Indian economy out of recession. But if import duty increases then it will be difficult to say how long the Indian economy will be able to get out of recession.