Union Budget 2023 to give boost to exports, manufacturing: Govt
New Delhi, February 2: As per the official release by the government, Union Budget 2023-24 has a slew of measures to boost exports and help accelerate the growth of manufacturing in the country.
Adding that the indirect tax simplification and rationalisation have a clear export-oriented focus.
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The Department of Commerce's recommendation on lab-grown diamond (LGD) has been accepted whereby the research grant of Rs. 242 crores over a period of 5 years to IIT Madras has been approved. This will enable the indigenisation of the manufacturing process of LGD, as per an official release.
An official release by the Government reads, "Further, a reduction of duty on LGD seeds from 5 per cent to 0 per cent has also been accepted which will result in reducing the cost of production of LGD growers and make our LGD exports globally competitive. The recommendation of the Department of Commerce for creating separate HS Codes for LGD has also been accepted. It would enable tracking the international trade in lab-grown diamonds."
According to the release, custom duty on articles of precious metals such as gold, silver and platinum has been increased from 20 per cent to 25 per cent thereby increasing the duty differential to 10 per cent over gold/silver/platinum bars. This will boost domestic manufacturing in the sector and result in import substitution.
Custom duty on imitation jewellery has been enhanced from 20 per cent to 25 per cent. This will discourage cheap imports from China and encourage domestic manufacturing.
“The reduction in import duty on fish meals from 15 per cent to 5 per cent will make the shrimp industry more competitive in the country and boost exports. The fish meal constitutes 40% of the cost of production of shrimp. This will also prevent the incidence of juvenile fishing which is used for fish meal in domestic production and will thereby improve our marine fish stock availability," it read.
This will go a long way in supporting our natural rubber farmers and further increasing its production in the country, it added.
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"Reduction of Customs duty on components of mobile phones, lithium-based batteries, open cells for TV panels etc. would go a long way in integrating into the global value chain and enhancing India's exports of these products," it read.