Budget 2022: Diamonds & Smartphones to cost less; imports to get more expensive

Imported headphones, umbrellas, and solar cells will be more expensive; cocoa beans and frozen mussels will be less expensive.

On Tuesday, Finance Minister Nirmala Sitharaman delivered the Union Budget 2022, stating that the country is likely to expand at 9.2 percent this fiscal year due to a strong economic comeback.

In her presentation of the Union Budget 2022-23, she proposed raising the basic customs duty (BCD) on imports of widely used goods such as headphones and earphones, loudspeakers, smart devices, imitation jewellery, solar panels, and solar modules in order to promote domestic manufacturing in the nation.


However, as a consequence of customs duty reductions, imported cut and polished diamonds, frozen squids, frozen mussels, asafoetida, acetic acid, methyl alcohol, and cocoa beans will become less expensive. The ministry has agreed to calibrate BCD in order to enable the local production of wearable gadgets, hearing equipment, and electronic smart devices.
It has been recommended to cut the BCD on camera lenses used in the production of camera modules for cellular phones from 15% to 2.5%.

To assist the MSME sector, the cabinet has suggested increasing the BCD on umbrella imports from 10% to 20% and removing the exemption for components of umbrellas.
“Exemption is also being rationalized on implements and tools for agri-sector which are manufactured in India,” Finance Minister Nirmala Sitharaman said while delivering the Union Budget for 2022-23.

The tariff exemption granted to steel scrap last year has been extended for more years to help MSME secondary steel makers. While duties on items like methyl alcohol (methanol) and acetic acid have been reduced from 10% to 2.5 percent and 5%, respectively.