Budget impact: Stocks that jumped post change in basic customs duty on different sectors

The Finance Minister announced several measures on customs duty revision for different sectors. Here are key sectors which saw major changes in basic customs duty and exemptions in certain products

Drugs/Medicines

• The government proposes to add 36 lifesaving drugs and medicines to the list of medicines fully exempted from Basic Customs Duty (BCD).
• It also proposes to add 6 lifesaving medicines to the list attracting concessional customs duty of 5%.
• Specified drugs and medicines under Patient Assistance Programmes run by pharmaceutical companies are fully exempt from BCD, provided the medicines are supplied free of cost to patients.
• Proposes to add 37 more medicines along with 13 new patient assistance programmes.

Critical Minerals

• The government fully exempted BCD on 25 critical minerals that are not domestically available.
• It also reduced the BCD of 2 other such minerals, which provided a major boost to their processing, especially by MSMEs.
• The government also reduced the BCD of 2 other such minerals to stimulate their processing, especially by MSMEs.
• This will help secure their availability for manufacturing in India and promote more jobs for our youth.

Textiles

• The government proposes to add two more types of shuttle-less looms to the list of fully exempted textile machinery.
• The government also proposes to revise the BCD rate on knitted fabrics covered by nine tariff lines from “10% or 20%” to “20% or ₹115 per kg, whichever is higher”.

Electronic Goods

• The government proposes increasing the BCD on Interactive Flat Panel Displays (IFPD) from 10% to 20% and reducing the BCD to 5% on Open Cell and other components.
• In the 2023 -24 Budget, I reduced the BCD on parts of LCD/LED TVs' Open Cells from 5% to 2.5% to further boost their manufacture. The BCD on these parts will now be exempted.

Lithium Ion Battery

• The government proposes to add 35 additional capital goods for EV battery manufacturing and 28 additional capital goods for mobile phone battery manufacturing.
• It proposes to add 35 additional capital goods for EV battery manufacturing and 28 additional capital goods for mobile phone battery manufacturing.

Shipping Sector

• The government proposes to continue the exemption of BCD on raw materials, components, consumables or parts for the manufacture of ships for another ten years.
• It also proposes the same dispensation for shipbreaking to make it more competitive.

Telecommunication

• The government proposes to reduce the BCD from 20% to 10% on Carrier Grade ethernet switches to make it at par with Non-Carrier Grade ethernet switches.