Feb 03, 2022
Signalling a move to protect domestic industries
which are not necessarily capital, technology or labour intensive, Finance
Minister Nirmala Sitharaman on Tuesday introduced a slew of higher custom
duties on items of daily use such as umbrellas, headphones, earphones,
loudspeakers, smart meters, and imitation jewelry.
Who do the duty changes help and what do they signify?
Most of these products are imported from China, either as complete units or as
knocked down units which are then assembled in factories in India. For example,
the customs duty on umbrellas was doubled to 20 per cent, while exemptions
provided on import of parts of umbrellas were withdrawn. Similarly, the customs
duty on single or multiple loudspeakers, whether or not mounted in their
enclosures was hiked to 20 per cent from 15 per cent.