The Union Finance Minister Nirmala Sitharaman presented the full – budget 2024 today before the parliament at 11 am. Energy transition is critical in the fight against climate change. To support energy transition, the FM proposed to expand the list of exempted capital goods for use in the manufacture of solar cells and panels in the country.
“Further, in view of sufficient domestic manufacturing capacity of solar glass and tinned copper interconnect, I propose not to extend the exemption of customs duties provided to them.”, says FM.
Expanding the list of exempted capital goods for use in the manufacture of solar cells and panels can have a significant positive impact on the solar industry and the broader economy.
By exempting more capital goods from customs duty, manufacturers can import necessary machinery and equipment at a lower cost which reduces the initial investment required for setting up or expanding manufacturing facilities.
Reduced costs of capital goods can stimulate the growth of the domestic solar manufacturing industry, encouraging new entrants and supporting the expansion of existing manufacturers. The expansion of manufacturing facilities can lead to the creation of new jobs, contributing to economic growth and reducing unemployment.
Exemption of a broader range of capital goods allows manufacturers to access the latest and most efficient machinery and technology, improving the quality and efficiency of solar products.
Increased adoption of solar energy contributes to the reduction of greenhouse gas emissions, mitigating climate change and environmental degradation. Promoting solar energy supports the transition to a more sustainable energy system, reducing the environmental impact of energy production and consumption.
The FM’s declaration may encourage domestic manufacturing, and promote the adoption of solar energy, such policies can contribute to economic development, job creation, technological advancements, and environmental protection. Balancing these benefits with supportive infrastructure and incentives for innovation will be key to maximizing the positive impact of these policy changes.
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