New Delhi, Feb 2 The Central Government has implemented adjustments to customs duties in an effort to bolster the self-reliance of the Indian economy, stated Finance Minister Nirmala Sitharaman during a post-budget discussion with NDTV.
When asked by NDTV Editor-in-Chief Sanjay Pugalia if the budget’s announcement regarding the reduction of customs duties on various automobiles—which could benefit firms like Tesla and Harley Davidson—was a response to tariffs imposed by US President Donald Trump, Sitharaman elaborated.
“Our perspective is oriented towards our own economy. Our aim is to reinforce the foundations of the Indian economy, establishing it as a manufacturing center,” she explained.
The Finance Minister highlighted that the Union Budget’s customs duty reductions are intended to make raw materials more affordable for MSMEs, facilitate access to crucial minerals, and enable Indian companies to import inputs and export high-value finished products.
In advance of Prime Minister Narendra Modi’s anticipated trip to the US, tariffs on Harley Davidson motorcycles were further decreased. The duty on completely built units (CBUs) for motorcycles with engines below 1600 cc has been reduced from 50% to 40%, while reductions are even steeper for motorcycles exceeding that engine capacity.
While the basic customs duty on imported cars and other vehicles has also seen a decrease, it remains uncertain if their effective duty rates will change.
Sitharaman noted that the government is striving to find a balance between fortifying the foundation of a ‘Viksit Bharat’ and placing substantial emphasis on critical sectors such as health, nutrition, and education through welfare initiatives.
She dismissed allegations from the Opposition that the BJP-led Central Government is merely attempting to attract voters in Bihar and Delhi with the announcements made in the Union Budget.
The Finance Minister presented the Union Budget for 2025-26 on Saturday, marking her eighth consecutive budget presentation.