Duty Hike Expected on Over 50 Items in Electronics Industry

· AtmaNirbhar Campaign Gets Protection

· Furniture and EV too Targetted

· ACs, Fridges

· The Govt is considering hiking import duties by 5%-10% on over 50 items including smartphones, electronic components and appliances in the upcoming budget, the report said

· The move to increase import duties is part of PM Modi's self-reliant India campaign that aims to promote and support domestic manufacturing

India is considering hiking import duties by 5%-10% on more than 50 items including smartphones, electronic components and appliances in the upcoming budget, three government sources privy to the discussions said on Monday.

The move to increase import duties is part of Prime Minister Narendra Modi's self-reliant India campaign that aims to promote and support domestic manufacturing, said the sources, who asked not to be named as the discussions are not public.

One of the sources said the government was seeking to target additional revenue of about ₹20,000 crore to ₹21,000 crore ($2.7 billion to $2.8 billion) from the moves, as it looks to shore up revenue amidst the pandemic-driven slowdown that has stung the economy.

Two of the government sources also said the duty hikes could impact furniture and electric vehicles, potentially hurting the likes of Swedish furniture maker Ikea and Tesla, which is planning to launch its cars in India this year.

Both Ikea and Tesla executives have previously expressed concerns about the steep duty structure their products already face in India. These duties will further increase in Budget.

The list of items likely to attract steeper duties is set to include appliances such as refrigerators and air conditioners too, three of the sources said.

Finance Minister Nirmala Sitharaman will unveil the budget on Feb. 1 amid the shadow of a projected economic contraction of 7.7% for the current fiscal year.