Centre To Remove 252% Import Duties To Develop India a Testing Hub, Says Heavy Industries Minister Zero custom duty will be effective from April 1, 2023

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Pexels

The Centre has decided to remove 252% import duty on automobiles brought in for testing at its agencies such as International Centre for Automotive Technology and Automotive Research Association of India, with an aim to encourage foreign automakers to test their vehicles in India.

Mahendra Nath Pandey, minister of heavy industries, has reportedly said that no custom duty will put India in the global business of car testing. The move will attract automakers from more countries to avail of the testing facilities available in the country and also will support the development of a testing hub in India. Zero custom duty will be effective from April 1, 2023.

The minister was speaking at the inaugural ceremony of Conference & Exposition on MHI schemes for the promotion and development of the automotive industry in the country, at International Centre for Automotive Technology (ICAT), Manesar, Haryana. MoS Heavy Industries Krishan Pal Gujjar also participated in the event.

"Earlier Custom duty payable for import of vehicles was very high, which in turn makes the test agencies as non-competitive for global business and services but with zero custom duty India will become a global testing hub," said Pandey in a statement.

A car crash test demonstration was also done in the presence of the Minister. A car at a speed of 56 km per hour was crash tested successfully at the ICAT center. After the crash test, Pandey said that currently, they mostly test their vehicles in the UK, Japan, Korea, China and Taiwan, as per reports.

Krishan Pal Gujjar has emphasized the initiatives taken by the ministry to promote clean and green mobility. In a statement, the minister said that, "These initiatives will give a boost to domestic manufacturing, help in employment generation, reduce dependence on exports, promote growth and development of the industry, and thereby help in achieving the vision of Atmanirbhar Bharat in the automotive industry."

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

News and Trends

Surat-Based B2B Textile Startup Fantail Secures INR 13.75 Cr Funding

The seed funding round was led by Riverwalk Holdings, Incubate Fund Asia, and All In Capital.

News and Trends

Fabheads Raises USD 10 Mn Series A Led by Accel to Revolutionise Composite Fiber Manufacturing

The funds will primarily be used to scale up the company's manufacturing capacity, while also expanding its leadership team and strengthening its client-facing engineering and R&D divisions.

News and Trends

Zerodha's Kamath Brothers Invest INR 250 Cr in InCred Ahead of IPO

InCred operates through three entities—InCred Finance, InCred Capital, and InCred Money.

Business News

AI Is Going to 'Replace Everybody' in Several Fields, According to the 'Godfather of AI.' Here's Who He Says Should Be 'Terrified.'

Geoffrey Hinton, called the "Godfather of AI" due to his pioneering work on AI, says some fields face a heavier risk of replacement due to automation.

Side Hustle

At Age 23, He Started a Side Hustle While on Welfare. It Led to a 7-Figure Business and a Stay on Richard Branson's Private Island.

Josh Turner launched a side project after he was fired — and it led to a lucrative business that gives back.