1/31/2020 Eco Survey makes case for correction in inverted duty structure - The Economic Times

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Eco Survey makes case for correction in inverted duty

structure
BY PTI | JAN 31, 2020, 07.33 PM IST Post a Comment

NEW DELHI: The Economic Survey on Friday made a case for correction in inverted duty
structure as it will help in reducing cost of intermediate inputs imported for making goods
for exports purpose.

Inverted duty structure impacts the domestic industry adversely as manufacturers have to
pay a higher price for raw material in terms of duty, while the finished product lands at
lower duty and cost.

It said that in recent times, India's tariff regime has come under pressure from trade
partners who seek a cut in the country's basic customs duties.
India has defended its tariff regime stating that it is necessary for protecting the vulnerable
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businesses in India.

However, it said independent of trade partners, the government is aware that some Big Change:
The end of Five-Year Plans: All you need to know
reduction in tariff rates may have to be done in respect of intermediate inputs and raw
material to correct the presently inverted duty structure.

"A corrected duty structure will reduce the cost of intermediate inputs imported for manufacturing of exports thereby making the
country's exports more competitive," the Survey said.

It will be a right incentive for boosting manufacturing and also increase the growth of exports, it added.

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