India May Become Auto Test Center, Central Government Eliminated 252 Percent Customs Duties

India may soon become the center of car testing. The Central Government eliminated the 252 percent customs duty on vehicles imported for crash tests in the country. This is likely to strengthen India’s position in the global car testing business. Previously, a foreign automaker had to pay a 252 percent customs duty when sending its vehicle to India for safety testing according to international standards.

Finance Minister Nirmala Sitharaman had announced in the budget to cut customs duties on car testing to zero from April 1. Heavy Industries Minister Mahendra Nath Pandey said: “Customs duties on importing test vehicles were very high. They were 252 per cent of the declared value of the vehicle. They included basic import duties, freight and insurance charges. This made it difficult for car testing agencies It became difficult for foreign companies to compete in this business He said only five countries in the world have international standards car safety test facilities India has now become a global center of car tests together with Germany, Japan, China, Taiwan and the UK.

Opportunities abound for India in global car safety testing. Many countries like South Korea, Iran, and Malaysia have shown interest in car testing. The automotive sector accounts for 7.1 percent of the country’s total GDP and about 49 percent of manufacturing GDP. By the end of 2021, approximately 3.7 million people had obtained direct and indirect employment in this sector. Tata Motors is the largest company in the electric vehicle segment. By the end of last year, Tata Motors had achieved the milestone of delivering 50,000 electric cars.

Electric vehicle sales are rapidly increasing in the country. To reduce carbon emissions and reduce fuel imports, the central government has taken steps to promote electric vehicles. Many state governments are also giving people subsidies on the purchase of electric vehicles. In the recently released Economic Survey, it was said that the automotive industry can play an important role in moving towards green energy. The country’s electric vehicle market is expected to grow at a compound annual growth rate (CAGR) of around 49 percent between 2022 and 2030.

For the latest tech news, smartphone reviews, and exclusive deals on popular mobile phones, download the Gadgets 360 Android app and follow us on Google News.

Related news

Leave a Comment