Import duty misstep

Higher tariffs on components hurt manufacturing

The government is reportedly considering a further increase in duties on crucial components used in the manufacturing of electronics. In particular, the Union ministry of commerce is believed to be examining a possible increase in the import tariff imposed on compressors — which are an integral part of the cooling mechanism in such white goods as air-conditioners (ACs) and refrigerators — as well as on the pre-coated steel sheets and copper tubes that are also used in the manufacturing process of these items. This follows a previous increase in the duty on compressors last year, from 7.5 per cent to