{"id":276521,"date":"2024-01-05T19:54:03","date_gmt":"2024-01-05T14:24:03","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=276521"},"modified":"2024-01-05T19:54:03","modified_gmt":"2024-01-05T14:24:03","slug":"reduction-of-import-duties-on-evs-import-concessions","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/reduction-of-import-duties-on-evs-import-concessions\/","title":{"rendered":"Reduction of import duties on EVs – Import concessions:"},"content":{"rendered":"

Source<\/strong>: The post reduction of import duties on EVs has been created, based on the article \u201cImport concessions: Trade agreements should focus on overall gains<\/strong>\u201d published in \u201cBusiness standard<\/strong>\u201d on 5th January 2024.<\/p>\n

UPSC Syllabus Topic: <\/strong>GS paper 3 – Indian economy- changes in industrial policy and their effects on industrial growth.<\/p>\n

News<\/strong>: The article discusses India’s proposal to lower import taxes on electric vehicles (EVs) to help secure a free-trade deal with the UK.<\/p>\n

About India’s electric vehicles (EV) Market <\/strong><\/h2>\n

India is the fourth-largest automobile market globally <\/strong>after China, the US, and Japan, valued at about $250 billion.<\/p>\n

It’s anticipated to grow annually by more than 9% from 2022 to 2027.<\/strong><\/p>\n

In 2023, EV sales in India surged by 45%<\/strong>, indicating growing market potential.<\/p>\n

However, fully assembled EVs priced above $40,000 face a 100% import duty, while those under $40,000 face a 70% duty. This is much higher than in countries like the US, France, Saudi Arabia, and China.<\/p>\n

What are the implications of the reduction of import duties on EVs?<\/strong><\/h2>\n

Positive Implications:<\/strong><\/p>\n

Attract Foreign Investment:<\/strong> Lower duties may entice companies like Tesla to set up manufacturing units in India.<\/p>\n

Competitive Pricing:<\/strong> Increased competition could lead to better and cheaper EVs, benefiting consumers.<\/p>\n

Global Integration:<\/strong> Lowering tariffs is vital for India’s participation in free trade agreements and attracting global players.<\/p>\n

Negative Implications:<\/strong><\/p>\n

Local Industry Threat:<\/strong> Domestic manufacturers fear reduced duties will flood the market with imports, harming local industry and investment.<\/p>\n

Sunrise Industry Risk:<\/strong> Lowering duties might deter investments in the domestic EV sector, considered a nascent yet promising industry.<\/p>\n

What are the government initiatives to support the EV market?<\/strong><\/h2>\n

Production-Linked Incentive Scheme:<\/strong> A scheme with an outlay of \u20b925,938 crore aimed at boosting local manufacturing in the automotive sector, including EVs.<\/p>\n

National Programme on Advanced Chemistry Cell:<\/strong> With an investment of \u20b918,100 crore, it focuses on promoting advanced cell chemistry for batteries.<\/p>\n

FAME Scheme:<\/strong> The Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles scheme (FAME 1,2 and 3) encourages the use of hybrid and electric vehicles through incentives.<\/p>\n

For more information on FAME read Article1<\/a>, Article2<\/a><\/p>\n

Way forward <\/strong><\/p>\n

Balancing reduced duties and nurturing the local industry is crucial. With the right policies, lowering import duties could lead to a more competitive market, resulting in better and cheaper EVs, benefiting consumers and the industry.<\/p>\n

Question for practice:<\/strong><\/p>\n

Discuss the potential implications of India’s proposal to lower import taxes on electric vehicles (EVs).<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post reduction of import duties on EVs has been created, based on the article \u201cImport concessions: Trade agreements should focus on overall gains\u201d published in \u201cBusiness standard\u201d on 5th January 2024. UPSC Syllabus Topic: GS paper 3 – Indian economy- changes in industrial policy and their effects on industrial growth. News: The article… Continue reading Reduction of import duties on EVs – Import concessions:<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,167,9],"tags":[10503,216,8184],"class_list":["post-276521","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-economy-subject","category-public","tag-business-standard","tag-gs-paper-3","tag-indian-economy","entry"],"jetpack_featured_media_url":"","views":{"total":2,"cached_at":"","cached_date":1704493054},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/276521","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=276521"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/276521\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=276521"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=276521"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=276521"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}