Budget: The Centre can rationalise customs duties and make decisions to protect domestic industries

Customs duty on various sectors, such as steel, solar battery, aluminum, and lithium cells, can be rationalized in the full budget to make the country a global manufacturing hub and for protection of domestic industries. Ameya Prabhu, President, Indian Chamber of Commerce, said duty on raw materials gets indirectly transferred to domestic companies and specifically the downstream units. Hence, protective measures are needed to increase domestic industry in those respective sectors. But through these measures, we can make India a global hub by strongly promoting domestic manufacturing.

He said that the ICC president reduced the duty on mixed petroleum gas from 5 per cent to 2.5 per cent. By doing so, the inverted duty structure can be improved. He has also recommended the government not to impose tax on dividends.

The Modi government, according to economist Sandeep Vempati, in the first budget of the third term, can underline fiscal deficit target and economic growth. He added that better dividends from RBI and increase in tax collection have resulted in an improvement in the fiscal situation. The government can stick to its targets with respect to limiting the fiscal deficit to 5.1 percent for the current financial year and bringing it below 4.5 percent by 2025-26. He further said that through this budget the government will give the message of an economic outlook for 2030 and 1947. For this, it can increase capital expenditure, tax incentives, spending on rural development, manufacturing, MSME, health and education.