Diamonds will now be cheaper, imitation jewellery and umbrellas costlier – here are the highlights on how Budget 2022 will impact imports

• Finance minister Nirmala Sitharaman on Tuesday unveiled Budget 2022, including several announcements on import duties.
• From diamonds to cotton, there were several announcements to control costs and encourage domestic manufacturing in certain sectors.
• Here are all the key highlights on customs duty in Budget 2022.

Diamonds will now be cheaper to purchase in India, while imitation jewellery and umbrellas are amongst things that will get costlier going forward, according to Finance Minister Nirmala Sitharaman’s announcements in Budget 2022.

Making the announcement, Sitharaman said that the import duty on diamonds will be reduced to 5% from the current rate of 10%.

On the other hand, imported imitation jewellery will now attract customs duty of ₹400 per kg.

Umbrellas, too, will attract an import duty of 20%, up from 10% currently.

Here’s how other imports will change going forward:

• Phones and phone chargers could get cheaper as exemptions on certain parts have been provided to encourage domestic manufacturing.
• Wearables, hearable devices and electronic smart meters could get cheaper as the government is calibrating the rates to provide a graded rate structure.
• Customs duty on certain critical chemicals namely methanol, acetic acid and heavy feed stocks for petroleum refining are being reduced.
• Capital goods could get costlier as the government has proposed to phase out concessional rates, instead charging customs duty at 7.5%.
• To encourage exports, the government has announced exemptions for inputs for exports of handicrafts, textile and leather garments and leather footwear. These inputs include embellishment, trimming, fasteners, buttons, zipper, lining material, specified leather, furniture fittings and packaging boxes.

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