PM [1]
Rank : Helper
Status : Super Owner
#1
Finance Minister Nirmala Sitharaman said the Centre has introduced custom duty rationalisation to ensure the Indian economy becomes aatmanirbhar (self-reliant).
Ms Sitharaman was responding to News Agency's Sanjay Pugalia on whether the budgetary announcement of reducing custom duty for many automobiles, which will benefit companies like Tesla and Harley Davidson, is a signal amid US President Donald Trump's tariff announcements.
"We are looking at our own economy. We are looking strengthen the foundation of the Indian economy, to make it a manufacturing hub," she said.
Ms Sitharaman added that the Union Budget's announcement of reducing custom duty aims at making cheap raw materials available for MSMEs, getting critical minerals and allowing Indian companies to import materials and export a finished product of high value.
Tariffs on Harley Davidson bikes were slashed further ahead of Prime Minister Narendra Modi's proposed US visit. For motorcycles with engine capacity not exceeding 1600 cc, the duty on CBUs (Completely Built Up) has been slashed from 50 per cent to 40 per cent. For larger motorcycles with engine capacity exceeding 1600 cc, the reductions are higher.
Though basic customs duty on the import of cars and other motor vehicles has also been reduced, it is not clear whether their effective duty rates will change.
The finance minister said the government has created a balance between strengthening the foundation of a 'Viksit Bharat' and equally focusing on key sectors like health, nutrition and education through welfare schemes.
She also rejected criticism by the Opposition that the BJP-led Centre was only trying to woo voters in Bihar and Delhi through the announcements in the Union Budget.
Ms Sitharaman presented the Union Budget 2025-26, her eighth consecutive presentation, on Saturday.