The central government is reducing the basic customs duty (BCD) on carrier-grade Ethernet switches from 20% to 10% to align it with non-carrier-grade Ethernet switches and avoid classification disputes, Finance Minister Nirmala Sitharaman announced while presenting the Union Budget 2025-26.
Watch: Union Finance Minister Nirmala Sitharaman presents the NDA government's second full #UnionBudget2025 of its third term, and her eighth consecutive one
— IANS (@ians_india) February 1, 2025
She says, "To prevent classification disputes, I propose reducing the BCD from 20% to 10% on carrier-grade Ethernet… pic.twitter.com/GmAShkeYU7
“To prevent classification disputes, I propose to reduce the BCD on carrier-grade Ethernet switches from 20% to 10%, bringing it at par with non-carrier-grade Ethernet switches,” Sitharaman stated in Parliament. This marks the Narendra Modi-led government’s eighth consecutive fiscal budget.
Ethernet switches play a crucial role in connecting wired devices to the internet and are widely used in enterprise, private, and telecom operator networks. Major suppliers in India include US-based Cisco Systems, D-Link, TP-Link, and Hewlett Packard Enterprise (HPE) Aruba Networking, among others.
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According to the International Data Corporation (IDC), global Ethernet switch revenues fell by 14.1% year-over-year in Q2 2024 to $10.2 billion but saw a 15.4% increase compared to Q1 2024.
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