Budget Boosts Manufacturing, Exports with Customs Duty Cuts and Credit Schemes

Experts believe the recent Budget announcements will energize domestic manufacturing and exports. Key measures include reductions in customs duties on a range of goods, credit guarantees for MSMEs, and establishment of e-commerce hubs. These initiatives are expected to support various industries, including garments, leather, and high-tech sectors.

The recent Budget announcements have drawn praise from experts, who believe measures such as cutting customs duties on a range of goods and introducing credit guarantee schemes for MSMEs will significantly boost domestic manufacturing and exports.

According to Apparel Export Promotion Council (AEPC) Chairman Sudhir Sekhri, expanding the list of trims and embellishments under concessional import rates will help increase shipments of ready-made garments, making the industry more competitive.

Chairman of the Council for Leather Exports (CLE) Rajendra Kumar Jalan welcomed the rationalization of export duties and the inclusion of various types of leather under duty-free schemes, which he believes will create more jobs and boost exports. Similarly, Hi-Tech Gears Ltd Chairman Deep Kapuria noted that the Budget's stable customs duty regime sends a positive signal to global companies regarding India's trade policies.

Chemical & Petrochemical Manufacturers' Association President Kamal Nanavaty highlighted the importance of the Critical Mineral Mission, which aims to facilitate domestic production and the acquisition of critical mineral assets. Meanwhile, Director of WOCE Anup Garg commended the abolition of the angel tax for all investor classes, which he believes will spur investments in startups focused on sustainability.

In the agriculture sector, PRADAN Executive Director Saroj Kumar Mahapatra emphasized that the focus on climate-resilient crop varieties will bolster food security and mitigate inflation risks.

(With inputs from agencies.)