After GST was implemented, there was not much room for items to be cheap and expensive in the budget. Petrol-Diesel and Alcohol were out of GST. In this case, the price of some items has been expensive and cheaper due to the decrease of customs duty. In the speech, the Finance Minister informed that customs duty has been increased from 15% to 20% on items such as mobile and TV. At the same time, the reduction in excise duty has reduced the prices of petrol and diesel. The cost of petrol and diesel will be reduced by Rs 2.
This decision will make the smartphones of all the international companies sold in India expensive. The biggest reason behind this is that even though many companies are assembling their phones in India, most of them come from China. There is a similar case of TV. In such a case whether both phones and TV are made in India or assembled in India, both types of phones and TVs will be expensive. Let’s say that the phones of the best-selling Xiaomi in India will also be expensive.
The Finance Minister said that with these steps, there would be more job creation in the country would. Actually, this step will make domestic products cheaper compared to imported products and as a result, the demand will increase significantly, which will lead to more employment opportunities for the general public.
The budget announcement of 2018 will bring lots of changes in country’s economy and help the average earning population to reap maximum benefits from it. Apart from this, the Finance Minister has proposed to reduce the customs duty on raw cashews from 5% to 2.5% with the aim of helping the cashew processing industry. The increase in customs duty will also increase the cost of imported juice and other products.