Govt mulls duty hike for car parts, hi-tech imports to bridge CAD

Ministry wants to avoid knee-jerk action, take time to think over levy increase

Components for mobile phones, finished high-end electronic products, and high-value automobile imports have been suggested by the commerce ministry for which the government can increase import duties to bridge the current account deficit (CAD).
 

At the same time, the ministry has warned that it is not in favour of knee-jerk reactions, senior officials said, arguing that more time was required for analysing the long-term impacts of tariff hikes. Officials also pointed towards reports claiming the finance ministry is in favour of raising import duties on gold, and said the government has to be careful to ensure gold sourcing does not