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

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By Teena Jose


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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.

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