Hike in custom duty on 19 products to boost domestic manufacturing: Exporters

The hike in customs duties on 19 products including ACs, refrigerators and footwears will help boost local manufacturing of these items, according to exporters.

Federation of Indian Export Organisations (FIEO) President G K Gupta said that higher tariffs coupled with the depreciating rupee will provide double protection to domestic industry and enable it to compete with imports.

"It will give a push to Indian manufacturing as well," he added.


However, imposition of import duty on aviation turbine fuel (ATF) is a cause of concern as it may hike the passenger air fares.

Rafeeque Ahmed, Chairman, Farida Group of Companies, said that the decision to hike basic customs duties would give a "cheer" to domestic players.

Ahmed, a leading footwear exporter, said that the move will help enhance competitiveness of domestic goods.

"Lot of Chinese footwear is coming to India. Duty hike and with depreciating rupee would act as a deterrent for importers now. It will cheer up local footwear manufacturers," he said.

The government Wednesday raised import duties on 19 items, including jet fuel and air conditioners, as it looks to check the widening current account deficit resulting from high crude oil prices and the rupee dipping to a historic low.

The enhanced duty rates, which will make these imported goods expensive, will come into effect from midnight of September 26-27.