Imported ACs, refrigerators to cost more as customs duty hiked to reduce widening CAD, stem rupee slide
6 years, 3 months ago

Imported ACs, refrigerators to cost more as customs duty hiked to reduce widening CAD, stem rupee slide

Firstpost  

Mumbai: The government said on Wednesday it is raising import tariffs on 19 “non-essential items,” marking a further tilt toward protectionism as it tries to reduce its widening current account deficit and tackle a sharp slide in the rupee. The new tariff structure, which goes into effect Thursday, will see the government raise customs duties on items such as air conditioners, refrigerators, footwear, speakers, luggage and aviation turbine fuel, among other items. “This is positive news for the rupee given that it will help reduce India’s current account deficit,” said a forex trader at a foreign bank. “This is a sentiment booster for the rupee,” said SBI Chief Economist Soumya Kanti Ghosh, adding that the overall impact on current account deficit will be muted.

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History of this topic

Budget could levy higher import duties to contain dollar demand, stem rupee slide: EY’s Srivastava
5 hours, 6 minutes ago

Budget could levy higher import duties to contain dollar demand, stem rupee slide: EY’s Srivastava

Live Mint  

New Delhi, Jan 15 The government, in the forthcoming Budget, could consider levying higher tariffs on imports to check the significant decline in rupee value witnessed in the past few months, said EY Chief Policy Advisor DK Srivastava. The noted economist argued that higher import duties would curb the demand for dollars from importers and help arrest the sliding value …

Services exports save the day for India’s current account deficit in September quarter
2 weeks, 4 days ago

Services exports save the day for India’s current account deficit in September quarter

Live Mint  

Mumbai: A rise in services exports helped narrow India's current account deficit in the September quarter, although this marked the second consecutive quarterly deficit after hitting a surplus in the final three months of FY24. In the three months prior to that—the fourth quarter of 2023-24 —India had registered its first current account surplus in about four years due to …

India’s current account deficit to remain manageable in FY25, Rupee to remain in pressure: Bank of Baroda
2 months ago

India’s current account deficit to remain manageable in FY25, Rupee to remain in pressure: Bank of Baroda

Live Mint  

New Delhi, November 15 : India's current account deficit will remain within a manageable range for both FY25 and FY26, largely due to muted oil prices that are expected to support the country's external financial position, projected a recent report by Bank of Baroda. Despite global market volatility, the report stated that steady oil prices at current levels are a …

August’s record gold influx lifts import bill to all-time high
3 months, 4 weeks ago

August’s record gold influx lifts import bill to all-time high

The Hindu  

India’s goods exports shrank 9.32% to $34.71 billion in August, while the import bill expanded 3.3% to an all-time high of $64.36 billion, fuelled by a doubling in gold imports to a record $10.1 billion. On the surge in gold imports, the top trade official pointed to plausible factors such as the recent reduction in import duty from 15% to …

India’s Trade Deficit Widens to $23.5B in July
5 months ago

India’s Trade Deficit Widens to $23.5B in July

Deccan Chronicle  

Chennai: India's trade deficit widened to $23.50 billion in July as exports dipped 1.4 per cent and imports grew 7.5 per cent. However, combined exports of merchandise and services registered a growth of 2.8 per cent and the ministry expects this year’s combined exports to be higher than last year’s. Merchandise exports in July this year dipped by 1.4 per …

Deceptive signals: The Hindu Editorial on India’s October 2023 goods exports numbers
1 year, 1 month ago

Deceptive signals: The Hindu Editorial on India’s October 2023 goods exports numbers

The Hindu  

Last month, India’s goods exports recorded only their second uptick this financial year, with a 6.2% rise. Merchandise imports grew a sharper 12.3% over last October and nearly 21% over September’s tally to hit an all-time high of $65.03 billion. The Finance Ministry’s monthly economic review asserted that merchandise exports “surprised on the upside” with the highest growth in 11 …

India’s goods trade deficit hits a 10-month high
1 year, 4 months ago

India’s goods trade deficit hits a 10-month high

The Hindu  

India’s foreign trade hit a fresh trough in August, with goods exports shrinking for the seventh successive month, services exports estimated to have dropped for the first time in well over a year, and the goods trade deficit hitting a 10-month high. The merchandise import bill for August dropped 5.23% year-on-year to $58.64 billion, but was 10.85% higher than July’s …

Budget 2023: Govt Likely To Hike Import Duty On 35 Items; Jewellery, Electronic Items To See Price Rise
2 years ago

Budget 2023: Govt Likely To Hike Import Duty On 35 Items; Jewellery, Electronic Items To See Price Rise

News 18  

The government is examining to hike customs duty on more than 35 items in the upcoming budget, which is scheduled to be announced on February 1, according to an Economic Times report. Meanwhile, the commerce ministry has also sought a reduction in the import duty on gold in the budget with a view to push exports and manufacturing of the …

A matter of import: On spectre of wider trade and current account deficits
2 years, 6 months ago

A matter of import: On spectre of wider trade and current account deficits

The Hindu  

India’s monthly merchandise trade deficit hit a fresh record of $25.6 billion in June as per preliminary estimates released by the Commerce and Industry Ministry on Monday. In June, the value of outbound shipments grew 16.8%, marginally slower than the 20.6% growth recorded in May, to about $38 billion — reflecting the third successive month of moderation. And although gold …

Trade deficit widens past $21 bn again in Feb
2 years, 10 months ago

Trade deficit widens past $21 bn again in Feb

The Hindu  

India’s merchandise exports rose 22.3% to $33.81 billion in February, while imports shot up 35% to surpass $55 billion, widening the trade deficit to $21.2 billion, as per preliminary foreign trade estimates. Gold imports, at $4.68 billion, were 11.5% lower than February 2021, but almost doubled from January’s $2.4 billion, a level that had contributed to narrowing the fiscal deficit …

Govt hikes import duty on select communication items to up to 20% to check widening CAD
6 years, 3 months ago

Govt hikes import duty on select communication items to up to 20% to check widening CAD

Firstpost  

The CAD widened to 2.4 percent of the GDP in the first quarter of 2018-19. New Delhi: The government Thursday hiked the import duty on certain communication items, including base stations, to up to 20 percent as part of efforts to check a widening current account deficit by curbing imports. Import duty on populated, loaded or stuffed printed circuit boards …

Government to raise import tariffs on several electronics to bolster falling rupee
6 years, 3 months ago

Government to raise import tariffs on several electronics to bolster falling rupee

Firstpost  

The tariff hike attempts to raise import barriers to curtail the import of goods. India said on 11 October it will raise import tariffs on several electronic items and communication devices, in another move to rein in imports and bolster a falling rupee. The tariff hike, the second such move by India in a two-week span, was announced late on …

Opinion | Caging the current account deficit
6 years, 3 months ago

Opinion | Caging the current account deficit

Live Mint  

It smells like 2013 all over again, with a ballooning current account deficit —higher goods trade deficit has offset buoyant remittances from abroad and a positive services trade balance—and a free fall in the rupee’s value versus the dollar. That said, the situation today is quite different from 2012 and 2013 when CAD was over 4% of the gross domestic …

Import duty hikes: Much ado about nothing
6 years, 3 months ago

Import duty hikes: Much ado about nothing

Live Mint  

How effective will be Wednesday’s import duty hikes on 19 supposedly non-essential items? Even as the government has included consumption- Reports say the current nominal import duty hikes will help the government raise revenue worth about Rs4,000 crore. Another casualty could be Havells India since it currently imports 70% of its subsidiary Lloyds’ requirement, although the company has the option …

Govt hikes import duties on 19 items; air conditioners, refrigerators, washing machines to get costlier from today
6 years, 3 months ago

Govt hikes import duties on 19 items; air conditioners, refrigerators, washing machines to get costlier from today

India TV News  

The government on Wednesday raised import duties on 19 items, including jet fuel, air conditioners and washing machines. The import duty on air conditioners, household refrigerators and washing machines doubled to 20 per cent. The basic customs duty on compressors, speakers and footwears raised to 10 per cent, 15 per cent and 25 per cent respectively. The duty on radial …

ACs, refrigerators, washing machines to get costlier, import duty hiked on over 19 items
6 years, 3 months ago

ACs, refrigerators, washing machines to get costlier, import duty hiked on over 19 items

Live Mint  

New Delhi: The government on Wednesday raised import duties on 19 non-essential items, including refrigerators, air conditioners, jewellery, diamonds and jet fuel, accounting for annual imports worth ₹ 86,000 crore, to arrest a widening current account deficit and a weakening rupee. The imposition of a 5% import duty on jet fuel is, however, unlikely to increase air fare as India …

Customs duty hiked on ‘non-essential items’, flying, ACs, refrigerators to cost more
6 years, 3 months ago

Customs duty hiked on ‘non-essential items’, flying, ACs, refrigerators to cost more

Hindustan Times  

The government Wednesday hiked customs duties on as many as 19 items, including jet fuel, ACs and refrigerators, effective midnight as it aims to curb imports of non-essential goods. Total import bill on account of shipment of these items into the country last fiscal was Rs 86,000 crore, the Finance Ministry said in a statement. “The central government has taken …

Govt to soon announce import curb on several non-essential items, says economic affairs secretary Subhash Chandra Garg
6 years, 3 months ago

Govt to soon announce import curb on several non-essential items, says economic affairs secretary Subhash Chandra Garg

Firstpost  

Last week, Finance Minister Arun Jaitley announced the government’s decision to relax norms for raising overseas borrowing and impose restrictions on the non-essential imports as part of efforts to check rising current account deficit and a falling rupee. New Delhi: The government will soon announce import curbs on several non-essential items, a top finance ministry official said Wednesday while terming …

Govt fires first salvo to defend rupee, but don’t rule out heavy-duty firepower
6 years, 3 months ago

Govt fires first salvo to defend rupee, but don’t rule out heavy-duty firepower

Live Mint  

Over the weekend, the government finally signalled its intent to defend the rupee. In fact, Reserve Bank of India governor Urjit Patel had warned presciently in June this year that this would create a dollar funding crisis and was a “double whammy” for emerging markets. As HDFC Bank chief economist Abheek Barua points out, India’s tariffs are still comparatively higher …

India may restrict non-essential imports to check rupee fall
6 years, 3 months ago

India may restrict non-essential imports to check rupee fall

Live Mint  

New Delhi: After Friday’s measures to increase capital inflows to check a falling rupee and curb the rising current account deficit, the next in line could be trade-related measures to curb non-essential imports and boost exports. On Friday, finance minister Arun Jaitley said a broad policy decision has been made to take necessary steps to cut non-essential imports and increase …

Focus on boosting exports, import curbs may not help control CAD: FIEO to govt
6 years, 4 months ago

Focus on boosting exports, import curbs may not help control CAD: FIEO to govt

Live Mint  

New Delhi: The government should focus primarily on boosting exports to check the widening current account deficit as imposing curbs on imports may not have a significant impact, exporters’ body Federation of Indian Export Organisations said on Saturday. FIEO President Ganesh Gupta said the government should not restrict imports to address rising current account deficit and fall in rupee. The …

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