New Delhi, 2 February 2025: Finance Minister Nirmala Sitharaman said the Centre has rationalized customs duties to strengthen India’s economic foundation and move toward self-reliance.
Responding to media on whether the reduction in duties for several automobiles, including those benefiting companies like Tesla and Harley-Davidson, signals a response to US President Donald Trump’s tariff policies, Sitharaman said, “We are looking at our own economy. We want to strengthen its foundation and make India a manufacturing hub.”
She said the Union Budget’s customs duty adjustments aim to provide MSMEs with affordable raw materials, ensure access to critical minerals, and enable Indian companies to import inputs while exporting high-value finished products.
Ahead of Prime Minister Narendra Modi’s proposed US visit, tariffs on Harley-Davidson motorcycles were further reduced.
For motorcycles with engine capacities up to 1,600 cc, customs duty on Completely Built Units (CBUs) has been cut from 50% to 40%, with steeper reductions for larger bikes. While basic customs duties on cars and motor vehicles have also been lowered, it remains unclear if their effective duty rates will change.
Sitharaman said the budget balances the goal of a ‘Viksit Bharat’ with investments in key sectors such as health, nutrition, and education through welfare schemes.
She also dismissed Opposition claims that the BJP-led Centre tailored budget announcements to attract voters in Bihar and Delhi.
