Budget Tariffs: Shielding the Rupee

EY Chief Policy Advisor DK Srivastava suggests higher import tariffs in the next Budget to curb the rupee's decline. Increased duties might reduce dollar demand, assisting the rupee, which hit a low of 86.70 per US dollar. This move could foster domestic industry growth and Atmanirbhar Bharat.

The upcoming Budget might introduce higher tariffs on imports to address the rupee's recent devaluation, according to EY's Chief Policy Advisor DK Srivastava.

The economist emphasized that increased import duties could lower the demand for dollars among importers, stabilizing the rupee, which recently fell to a historical low against the US dollar.

Srivastava noted that policymakers face challenges on both fiscal and monetary fronts as financial resources move to a recovering US economy. He recommended examining tariff rates closely to support domestic industry and reduce import reliance.

(With inputs from agencies.)