The National Democratic Alliance (NDA) government has measured one-third of domestic tariffs (PCD) in six years.
A tariff line is a specific duty rate assigned to one or more products within a product group. The increase in the PCD includes about 4,000 tariffs, and budget documents show that India has responded to a general global increase in measures to protect local manufacturers from import competition.
India’s customs tax structure is guided by a “conscious policy to promote domestic value addition”, which means a lower duty on raw materials and a “reasonable tariff support” for goods made in India. In recent years the PCD has been elevated “on products manufactured in India or preferred for domestic industry production”.
A fall in tariff hikes is an increase in imports from India’s free trade partners, which last year forced the Narendra Modi administration to take a number of steps to ensure that New Delhi does not take advantage of New Delhi’s access to third party goods. Free trade agreements. Accordingly, the source rules have been tightened based on the demand for tax concessions by exporters of free trade partner countries.
In the union budget for fiscal year 22, the government removed tariff exemptions on 80 items, described it as ‘expired’ and promised to review 400 other duty exemptions. It raised obligations on many products, from farm products to leather, gems and jewelry, auto parts, some capital goods and metal goods. Policymakers insist that tariff measures to support local production are temporary and that India is committed to opening up global trade. But experts say less energetic global trade has raised concerns about the prospects for economic recovery.