New Delhi, July 24, 2024 – In a significant move aimed at reducing retail prices and boosting consumer demand, Finance Minister Nirmala Sitharaman today announced substantial reductions in customs duties on several essential items, including cancer medicines and mobile phones. The announcement was made during the presentation of the Budget 2024 in Parliament.
“The government will exempt three more cancer treatment drugs from customs duty. I will also reduce basic customs duty on mobile phones, chargers, and other mobile parts,” Ms. Sitharaman stated.
The finance minister also revealed a reduction in import duties on gold and silver to 6%, a decision that industry experts believe will stimulate retail demand and help curb smuggling in India, the world’s second-largest consumer of bullion.
Impact on the Market
The exemption of customs duty on additional cancer treatment drugs is expected to make these life-saving medications more affordable for patients, significantly reducing the financial burden on families.
The reduction in customs duty on mobile phones, chargers, and parts will likely lead to a decrease in retail prices, making these devices more accessible to the general public.
Lower import duties on gold and silver are anticipated to increase demand, which could support global prices that reached a record high earlier this year. However, this could also exacerbate India’s trade deficit and impact the rupee’s value.
Industry officials have welcomed the reduction in import duties, particularly on gold and silver, viewing it as a move that will boost retail demand and reduce smuggling.
This budget marks the first of the Modi 3.0 government and is expected to have a significant impact on India’s economic landscape, affecting various sectors from infrastructure development to social welfare programs.
Prime Minister Narendra Modi expressed confidence in the budget, emphasizing its focus on ensuring government guarantees reach the common man. “The Finance Minister will present a strong budget,” he assured, underscoring the government’s commitment to economic growth and social welfare.
Yesterday, on the first day of the Monsoon Session of Parliament, Ms. Sitharaman tabled the Economic Survey, setting the stage for today’s budget announcement.
This budget’s strategic cuts in customs duties are poised to bring relief to consumers and stimulate various sectors of the economy, marking a pivotal step in the Modi 3.0 government’s economic agenda.
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