The has exempted all indigenously manufactured goods from excise duty when being sold at duty free shops to encourage sales and maintain margins for the sellers even in troubled times.
The Indian government seems to be getting a hang of all the international trends in order to make inroads into the hearts and wallets of the people across the world.
In a recent move targeted at the redemption of the popularity levels of the local manufacturers amongst foreign tourists, the government has decided to exempt all locally manufactured goods sold at the duty free shops, present in the airports across the country, from excise duty.
The reduction in the excise duty would bring down the prices of the products significantly, with the actual figure being around 10 per cent. The change comes as a pleasant one, especially in the current times, since along with the different aspects of the global economy, the aviation sector in India has been having a torrid time.
The economic predicament has made it difficult for the Indian manufacturing sector, to maintain its growth rate, as it has added to the woes that the Chinese competition was presenting it with.
The airport duty free stores are a great opportunity for local manufacturers to get premium pricing for their products, which helps in the sustaining of operations even in the most difficult of times, and this is what makes this move by the government a very important one.
The indigenous items being sold at these shops would now cost almost 10 per cent less than what the consumers have been traditionally been charged. This would help the local vendors fend off the competition that the imported products have been giving them, helping them to see through difficult times.
The move would also help in enhancing the image of India as a brand across the world, since all tourists and Indians travelling abroad, would be able to carry with them exclusive souvenirs representing the homely and warm feeling associated with the country.
The parity with the imported products though, would be the single largest advantage that the step would provide, as it would help out both the manufacturers and the average person visiting the airport.
The popularity of Indian merchandise and exclusive products is well known and well understood both by the local vendors and the manufacturers, and thus the implications for them are great, as the sales would get a major push because of the price fall.
The government has been treading on sticky grounds in the recent times regarding concerns over the faltering economy and the lack of substantial measures in tackling it, which has led to it taking a series of steps in progressive directions and the move to exempt indigenous goods is another one on the right track.
BankBazaar.com is an online marketplace where you can instantly get the lowest loan rates , compare and apply online for your personal loan , home loan , car loan and credit card from India's leading banks and NBFCs.
ADS BY GOOGLE
Ask the Experts
Get your Personal Finance queries answered