NEW DELHI - India plans to increase import duties on more than 50 items including electronics, electrical goods, chemicals and handicrafts, targeting about US$56 billion worth of imports from China and elsewhere, officials and industry sources said.
The move could hit smartphone manufacturers that still import chargers or other components such as vibrator motors and ringers, along with retailers such as giant IKEA that is in the process of expanding its footprint in India.The government had identified items and decided to increase import tariffs by 5 per cent-10 per cent as recommended by a panel of trade and finance ministry officials, among others, the second government official said.
Since taking charge in 2014, Prime Minister Narendra Modi has imposed several restrictions on imports while allowing more foreign investment in manufacturing, defence and other sectors. A committee of trade ministry officials in consultation with local industries had initially planned to target more than 130 items accounting for roughly US$100 billion worth of imports, but it has since pruned the list, the first official said.
The official added this could be imposed on top of any tariffs further raising the costs of imported goods.