Budget decision on customs duty hike to impact imports of $85 bn in a year

The duty hike on 40 categories of goods, which make up about a fourth of total imports, will augment total customs collections in 2018-19 only by 19%, lower than the current year's 25%

In his Budget 2018 speech on February 1, Finance Minister Arun Jaitley announced an increase in customs duty on 40 categories of goods in the range of 33-100 per cent. The increased customs duties, it was said, would be able to achieve the goals of encouraging domestic value addition by promoting ‘Make in India’ and helping creation of more jobs in the country. Will the move achieve these targets? And how will it impact the central government's overall customs duty collections? A K Bhattacharya explains in this BS Special piece:

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