Budget 2023 gives hope for enhanced exports – Piyush Goyal

The Finance Minister Nirmala Sitharaman yesterday announced the Union Budget 2023, which was welcomed by all in high spirits. She announced few major changes in the structure of customs duties and taxes, which are expected to boost India’s export activity despite the global economic uncertainties, said Union Minister for Commerce and Industry Piyush Goyal. However, he also acknowledged a small dip that merchandise exports can show due to inflation and high inventories globally.

“The world is seeing recessionary conditions and global growth and global trade is also expected to slow down. Despite that when we combine our merchandise and service exports, we are still at quite a sweet spot…We believe that we will close this year also at a double-digit growth in goods and services combined,”

Goyal said that as inflation eases out, the exports shall witness a boost with the reformed tax and customs structure. He appreciated Sitharaman’s generous allocations for the commerce and industry ministry and the ‘intelligent’ tweaks in the duties upwards as well as downwards.

In the Budget, customs duty on lab-grown diamonds has been removed from 5 per cent earlier. Goyal said that seeds used in lab-grown diamonds (LGD) are essential raw materials which are processed in India and help us create high-quality LGD which have a large market.

“LGD exports have grown multi-fold in the last 3-4 years and the industry tells us that there is a potential for adding nearly another 4x or 5x growth in the next few years,” he added.

The FM also announced that the concessional import duty on lithium-ion cells will continue, which is required for the manufacture of electric vehicles. According to Goyal, since India doesn’t manufacture these cells yet, the FM’s announcement will be crucial for cost control in the domestic manufacturing of EVs. This shall further increase the adoption of EVs in India.

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