Global Trade Alert
Global Trade Alert

India: Trade implications of the 2017-18 budget

Announcement

01 Feb 2017

On 1 February 2017, India's Finance Minister presented the 2017-18 Union Budget. The international trade and investment implications from the measures within this budget are summarised in this measure.

Source

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Number of interventions

7

4 certainly harmful

0 likely harmful

3 liberalising

List of interventions

Implementation date

01 Apr 2018

Revocation date:

No revocation date

Announced: 01 Feb 2017
Controls on credit operations In force
The concessional withholding tax at the rate of 5%, against 20%, on interest income earned by non-residents or non-resident entities from their commercial borrowings to Indian companies has been exten...
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Implementation date

01 Apr 2017

Revocation date:

No revocation date

Announced: 01 Feb 2017
Production subsidy In force
The budget allocation for the year 2017-18 in electronics manufacturing schemes such as the Modified Special Incentive Package Scheme and the Electronic Development Fund has been increased to INR 745 ...
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Implementation date

02 Feb 2017

Revocation date:

No revocation date

Announced: 01 Feb 2017
FDI: Entry and ownership rule In force
In order to liberalize Foreign Direct Investment, the Foreign Investment Promotion Board (FIPB) has been decided to be abolished. The FIPB was authorized to provide approvals for certain FDI projects ...
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Announced: 01 Feb 2017
Import tariff In force
The Basic Customs Duty has been reduced on the import of the following products - From 10%/7.5% to 5% on imports of "machinery, including instruments, apparatus and appliances, transmission equipment...
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Implementation date

02 Feb 2017

Revocation date:

No revocation date

Announced: 01 Feb 2017
Export subsidy In force
The exemption limit for duty-free imports of accessories by export manufacturers of leather footwear or synthetic footwear or other leather products is increased from 3% of the Free on Board (FOB) val...
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Announced: 01 Feb 2017
Export tax In force
The export duty on aluminium ores, including laterite, has been imposed at 15%. This duty is not applicable on other items falling under the same tariff code. This duty imposition has been notified th...
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Implementation date

02 Feb 2017

Revocation date:

30 Jun 2017

Announced: 01 Feb 2017
Import tariff
The Special Additional Duty exemption of 4% on import of Populated Printed Circuit Boards (PCBs) used in the manufacture of mobile phones has been withdrawn. A concessional duty at the rate of 2% will...
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