The Union Budget 2023–24 will promote exports and manufacturing.
Union Budget 2023-24 includes a number of initiatives to enhance exports and support the nation’s manufacturing sector’s rapid expansion. The export-oriented objective of indirect tax reduction and rationalization is evident.
The highlights for the exports and manufacturing sectors are as follows:
The research funding for IIT Madras totaling Rs. 242 crores over five years has been authorized following acceptance of the Department of Commerce’s recommendation on lab-grown diamonds (LGD). This will make it possible for LGD to manufacture its products locally.
The duty on LGD seeds has also been reduced from 5% to 0%, which will lower the cost of production for LGD growers and increase the competitiveness of our exports of LGD on a global scale. The Department of Commerce’s suggestion to separate the HS Codes for LGD has also been approved. It would make it possible to monitor the lab-grown diamond trade internationally.
The customs charge on items made of precious metals like gold, silver, and platinum has gone up from 20% to 25%, bringing the difference in duty on gold, silver, and platinum bars to 10%. Imports will be substituted for domestic production as a result of this.
The 20% to 25% customs tax on fake jewellery has been increased. This will promote indigenous production and deter cheap imports from China.
The country’s shrimp business will become more competitive and exports will increase as a result of the drop in fish meal import taxes from 15% to 5%. 40% of the cost to produce shrimp is made up of fish meal. Additionally, by reducing the likelihood of juvenile fishing, which is used to produce fish meal at home, we will increase the availability of our marine fish stocks.
It has been decided to increase the import duty on compound rubber from 10% to 25%, as recommended by the Department of Commerce. As a result, the nation will import less compound rubber, which will increase the demand for and price of locally produced natural rubber. This will significantly contribute to assisting our natural rubber growers and raising national production levels.
The financial sector has been designated as a priority sector in the budget. Long-term promotion of India’s financial services exports will come from actions to improve business activity in GIFT IFSC, a thorough review of current financial sector rules, and support for digital payments.
Enhanced tourism service exports would result from the integrated development of at least 50 tourist locations and initiatives aimed at improving visitor experiences in India.
30 International Skill India Centers, which were announced in the budget, would help make Indian professionals more competitive on the global stage and will promote growth in service exports through a variety of channels by leveraging India’s demographic dividend.
Reducing customs taxes on items like open cells for TV panels, lithium-based batteries, and mobile phone parts will help India better integrate into the global value chain and increase its exports of these goods.
Capital items used in the production of lithium-ion cells for EV batteries are exempt from customs duties. This would support the motor industry’s ability to remain competitive on a worldwide scale.
With the support of an R&D grant to the Indian Institute of Millet Research, the country will be able to establish itself as the world leader in millet exports and quality improvement of Shree Anna (Millets).
Additionally, we have highlighted the 2023–24 union budget. the following link to learn more: union budget 2023-24 highlights
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