Centre finalising tariffs on non-essential imports

Centre finalising tariffs on non-essential imports

News

1. The government is planning to impose curbs on imports of “non-essential” items to strengthen  the rupee.

Important Facts:

2. Non-essential items include electronics, gems, select items of steel that are also manufactured in India, imported apples, and almonds, among others.

3. Reasons for this move

• The rupee is down about 12 per cent this year amid a widening current account deficit.
• Also, imports of non-essential items like gold and electronic goods have picked up significantly in recent months.

4. Other measures announced by government to curb rupee fall-

• easing of overseas borrowing norms for manufacturing companies
• removal of restrictions on foreign portfolio investment in corporate bonds
• tax benefits on masala bonds

5. Impact of the move

• The list would help in strengthening the rupee at about ₹68-70 to the U.S. dollar.