The government may consider increasing import duty on certain items related to power, capital goods and chemicals sectors in the forthcoming Budget with an aim to boost domestic manufacturing, sources said.
The move would also help promote the government's ambitious 'Make in India' initiative, said the source, who did not wish to be named.
Imports of cheap power equipment have been affecting domestic manufacturers as well as created issues for independent power producers in view of poor quality and after sales service.
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The Indian Electrical and Electronics Manufacturers' Association (IEEMA) in its pre-Budget recommendations have asked the government to remove concessional basic customs duty on imports of certain items in the power sector.
It has also said that various finished products of electrical industry attracts a basic customs duty, ranging from 7.5 per cent to 10 per cent.
However, the same finished products are imported at a concessional basic customs duty of 5 per cent.
The 'Make in India' initiative is aimed at making the country a global manufacturing hub.
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