In a move to boost domestic industry, the government has increased the customs duty on certain products including toys, mobile phone parts, electric vehicles, medical devices, furniture and kitchen wares.

The budget has also cut the duties on items including skimmed milk, raw sugar, agricultural and animal-based products, and particular alcoholic beverages.

Defending the duty hike, finance minister Nirmala Sitharaman said “the items have been carefully selected and are only on finished products which are being produced by the MSME sector in the country of the same quality if not better. We want to give a boost to the domestic industry.” She said by September the government will comprehensively review customs duty exemptions being given to certain products to weigh their relevance.

The new tariffs come as India and the US try to resolve their trade differences and have been at odds over certain tariffs. Washington has been urging India to not impose trade barriers that restrict the growth of American firms.

Saloni Roy, senior director, Deloitte India said “the finance minister’s proposals for reviewing customs duties to provide support to domestic manufacturers may not achieve the spur that is required for “Make In India” campaign.

“What would have been preferred would have been steps to enhance simplicity in undertaking business in India.”

Taxes on the imports of items including kitchenware, fans and small electrical appliances will be doubled to 20 per cent, while the levy on furniture including seats, lamps and mattresses will be raised to 25 per cent from 20 per cent.

Taxes on imported toys would be tripled to 60 per cent, which analysts said could hit imports of toys made by firms such as Lego, Hasbro and Mattel and the boost smuggling of unbrandedtoys from abroad.

The duty on shelled walnuts will be raised to 100 per cent from 30 per cent, while certain car and smartphone parts will also face higher import taxes. The custom duty has been hiked to 20 per cent for kitchenware and tableware that is made of China ceramic, steel, copper, and clay iron. Duties have also been increased on wall fans from 7.5 per cent to 20 per cent.

In terms of imported electrical appliances, custom duties have been increased for imported grinder/mixers, water heaters, hair dryers, toasters, coffee makers and ovens .