A push towards ‘Atmanirbhar Bharat’ in Budget 2024

Government has garnered tremendous success from its earlier reforms in the mobile phone manufacturing sector.

By Gautam Khattar 

The Finance Minister tabling the first budget of Modi 3.0 government has reaffirmed its commitment on enhancing self-sufficiency or ‘Atmanirbhar Bharat’ through key tax initiatives aimed at empowering the Indian local manufacturing.

A slew of rate rationalization measures has been introduced to transform the economy into a global manufacturing powerhouse. Government has garnered tremendous success from its earlier reforms in the mobile phone manufacturing sector, which has resulted into a three-fold increase in domestic production over the last six years.

Continuing its endeavour to promote Make in India, Government has now reduced the basic customs duty rate on mobile phone, printed circuit board assembly and mobile chargers to 15 percent. Further, in an effort to bolster the aviation and marine sector, the Government has increased the time limit for export of goods imported for repair under Maintenance, Repair and Operations (MRO) from 6 months to one year.

Additionally, the time limit for re-importation of goods for repairs under warranty has been increased from three years to five years. To enhance the domestic value addition in precious metals, basic customs duty on gold and silver has been reduced. On similar lines, basic customs duty on X-ray tubes and flat panel detectors for use in medical X-ray machines have been reduced under phased manufacturing programme to align with domestic capacity addition and fostering innovation in the medical technology sector. On the other hand, 5 percent increase in the basic customs duty rate of printed circuit board assembly is endeavoured to boost local manufacturing of telecom network gear and make imports costlier.

The rationalization in the customs duty rates will play a significant role in achieving government’s vision of a self-reliant India and to further promote its initiatives such as Production-Linked Incentive Schemes. Overall, the budget provides a robust framework for growth and has the ability to attract foreign direct investment to build strategic and sustainable growth trajectory.

The author is Principal – Price Waterhouse & Co LLP. 

Views are personal and do not represent the stand of this publication.