Business Standard

Are we over-protecting India? Tariff hikes could do more harm than good

Govt believes higher import duties on 19 non-essential items will help control the current account deficit, but analysts point out they might only reduce imports by 0.1 per cent

import, importers
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Total buyer credit for the top 160 importers was Rs 331 bn in FY17

Business Standard Editorial Comment
The government has raised import duties on 19 products, including some electronic goods that it has declared “non-essential”. Tariffs on imported air conditioners, household refrigerators, and washing machines of less than 10 kg have doubled from 10 per cent to 20 per cent; the crucial input for these white goods and compressors will be charged a 10 per cent duty as compared to 7.5 per cent earlier. Speakers, suitcases and tyres will be tariffed at 15 per cent compared to 10 per cent; footwear at 25 per cent as compared to 20 per cent; and jewellery at 20 per cent

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First Published: Sep 30 2018 | 11:26 PM IST

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