Tax Cuts Boost Export Potential and Domestic Production

The Commerce Ministry highlights that reduced customs duties on marine, chemical, and mineral inputs will bolster domestic manufacturing and exports. The revised Model Bilateral Investment Treaty aims to strengthen Free Trade Agreements. Duty reductions on specific goods are expected to enhance India's competitiveness.

The recent budget has brought significant reductions in customs duties across key sectors such as marine, chemicals, and critical minerals, according to the Commerce Ministry. This move is anticipated to bolster domestic manufacturing and increase exports, providing a competitive edge globally.

The duty on vital marine products like frozen fish paste and fish hydrolysate for aquatic feed has been slashed significantly. Similarly, the chemicals sector sees cuts on pyrimidine and piperazine compounds, crucial for medicine production, and synthetic flavouring essences, used in the food and beverage industry, enhancing the affordability of these inputs.

Further, the customs levy on minerals such as lithium, cobalt, and copper has been reduced to zero, lowering production costs. These changes, along with a revamped Model Bilateral Investment Treaty, aim to strengthen India's negotiation stance in Free Trade Agreements and attract more foreign investors.

(With inputs from agencies.)