Import duties in India at a glance

Import duties are taxes levied on goods transported across international borders. India is known for its relatively high import duties, which average between 27 and 30%. For alcohol, cars and other luxury goods, the levies are even higher, well over 40%.

India’s high import duties explained

The Indian government raised a significant number of import duties in 2020, partly due to the pandemic, including those on toys, footwear, household goods and appliances. This was done at the time in an attempt to make India more self-sufficient, combat inflation and reduce the current account deficit.

Many of these high tariffs remain in place four years later, but for the 2024-2025 budget, Indian Finance Minister Nirmala Sitharaman has indicated that she will review a significant number of them. Import duties on items such as gold, silver, mobile phones, medicines, medical equipment and raw materials for the leather and textile industries will be reduced this year.

The reason for the reduction is the Indian government’s desire to attract more international producers. It is already doing this by offering cheap land and special tax benefits. For international companies that want to avoid the high Indian import duties, it may therefore be interesting to set up their own factory or production location.

How to pay import duties in India

As an international exporter, you can now easily pay your import duties online by following these steps:

• Log in to ICEGATE’s e-payment portal
• Enter the import or export code or enter the login details provided by ICEGATE.
• Now click on the e-payment button
• You will then be able to see all the e-challans under your name.
• You can then choose the challan you want to pay and select the payment method, after which you will be redirected to the payment gateway.
• Once the payment is made, you will be redirected back to the ICEGATE portal.
• Finally, click on the Print button and save your payment copy.