An official press release from the government said the Union Budget 2023-24 has a package of measures to boost exports and help accelerate the growth of the country’s manufacturing sector. According to the official press release, it is added that the simplification and rationalisation of indirect taxes are clearly export-oriented.

The Department of Commerce’s proposal on laboratory-grown diamonds (LGD) has been accepted, and a research grant of Rs 242 crore to IIT Madras has been approved for five years. According to the official release, this will localise LGD’s manufacturing process.

“Additionally, reducing tariffs on LGD seeds from 5% to 0% has also been accepted, reducing production costs for LGD growers and making our LGD exports globally competitive. The Ministry of Commerce’s proposal to create a separate HS for LGD The code has also been accepted. It will enable tracing international trade in lab-grown diamonds,” it read.

According to the press release, duties on articles of precious metals such as gold, silver and platinum have been increased from 20% to 25%, thereby increasing the duty differential to gold/silver/platinum bars to 10%. This will boost domestic manufacturing in the industry and lead to import substitution.

Duty on imitation jewellery has been increased from 20% to 25%. This would discourage cheap imports from China and encourage domestic manufacturing.

“Reducing fishmeal import duties from 15% to 5% will make the shrimp industry more competitive in the country and boost exports. Fishmeal accounts for 40% of the cost of shrimp production. It will also prevent the incidence of juvenile fish used for domestic production of fishmeal, thereby increasing the availability of fish in our oceans,” it read.

Agreed with the Department of Commerce’s proposal to increase import duties on compounded rubber from 10% to 25%, saying this would reduce domestic imports of compounded rubber, boosting demand and prices for natural rubber produced in the country.

It added that this would greatly support our natural rubber growers and further increase their production in the country.

The budget has identified the financial sector as a priority sector. It said measures to strengthen GIFT IFSC business activities, a comprehensive review of existing financial sector regulations, and support for digital payments would boost India’s financial services exports in the long run.

The comprehensive development of at least 50 tourist destinations and measures related to enhancing the tourist experience will provide impetus to the arrival of foreign tourists in India, boosting the export of tourism services.

Furthermore, taking advantage of India’s demographic dividend, the 30 International Skills India Centres announced in the budget will help increase the global competitiveness of Indian professionals and facilitate the growth of service exports through various modes, according to the release.

“Reduction of tariffs on mobile phone components, lithium batteries, open cells for TV panels, etc. will greatly facilitate integration into global value chains and enhance India’s exports of these products,” it said.