'This Is A Consistent Thing': FM Sitharaman On Customs Duty Cuts, Levy Withdrawal Not Driven By Global Events

The ongoing process of rationalizing customs duties and withdrawing the 6% equalization levy is independent of any global event and will continue to be so, the Union Finance Minister Nirmala Sitharaman said on Thursday, while replying to a debate on the Finance Bill 2025.

According to the Finance Minister, customs duty reductions are part of India's broader objective to strengthen its manufacturing hub and boost battery and advanced chemistry capacities.

This dialogue has come up because India has reduced Customs duties on many items and has withdrawn the equalization levy of 6% as Donald Trump has declared a 25% tariff on all imported vehicles entering the United States.

FM Assures Levy Withdrawal And Duty Cuts Have Been Consistent

"Consistently, budget after budget, we are coming up with a reduction in duties so that India's aspiration for being a manufacturing hub and India's aspiration in building capacities for battery manufacturing and advanced chemistry is being supported. So this is a consistent thing," the minister said in the Lok Sabha.

While some members believe that this is a move that is a response to the tariff announcement made by US President Trump, the FM assures, "we have been doing it since 2023, steadily, every year."

"So, this is an ongoing process, It has nothing to do with today's global situation but is a process that will continue even in the future," Sitharaman said.

Also Read: DOGE Can Save America: Musk Urges Citizens Not To Worry About Social Security