Budget 2018: Imports will not decline with Customs duty hike, say experts

While component makers, including tyre manufacturers, are a happy lot, foreign automobile companies, whose volumes are low and depend on imports (such as BMW and Mercedes) are unhappy

The government on Thursday raised the basic Customs duty on a range of products from consumer goods and automotive parts to fully and partly built vehicles and medical devices, among others. The hike was to the tune of 5-10 per cent with an additional surcharge slapped on the basic Customs duty, making goods costlier as a result.

But, while the move was aimed at providing a boost to the government’s Make in India plans, the question is: Will these measures actually aid local manufacturing? Experts believe that they will not, because the crucial component market required to aid local manufacturing remains