Tariff-hit exporters seek duty rationalisation in Budget 2026
The upcoming Budget 2026 has sparked high expectations among exporters from tariff-hit sectors, who are seeking measures like customs duty rationalisation to remain competitive in overseas markets. According to a report by Moneycontrol, the industry is urging the government to take steps to mitigate the impact of higher tariffs imposed by countries like the US on Indian exports. The sectors most affected by these tariffs include textiles, apparel, gems and jewellery, and chemicals.
The US has imposed higher tariffs on most Indian exports, making it challenging for Indian exporters to compete in the global market. The tariffs have increased the cost of Indian products, making them less attractive to foreign buyers. As a result, exporters are finding it difficult to maintain their market share and are seeking relief from the government. The industry is hoping that the Budget 2026 will address their concerns and provide measures to support them.
One of the key demands of the exporters is customs duty rationalisation. They are seeking a reduction in customs duties on raw materials and intermediates to reduce the cost of production. This, they believe, will help them to remain competitive in the global market. The industry is also seeking a simplification of the customs duty structure, which they claim is complex and cumbersome.
In addition to customs duty rationalisation, the exporters are also seeking support for Micro, Small, and Medium Enterprises (MSMEs). MSMEs are the backbone of the Indian economy, and they play a crucial role in the export sector. However, they face several challenges, including limited access to finance, inadequate infrastructure, and lack of technology. The industry is urging the government to provide support to MSMEs in the form of easy credit, technology upgradation, and infrastructure development.
Another area of concern for exporters is the increasing focus on clean energy and carbon compliance. The US and other developed countries are increasingly emphasizing the need for sustainable and environmentally friendly practices in the production process. Indian exporters are finding it challenging to comply with these regulations, which are not only complex but also costly. The industry is seeking relief from the government in the form of incentives for adopting clean energy and carbon compliance measures.
The use of technology is also a key area of focus for exporters. The industry is seeking support for technology upgradation, which will enable them to improve their productivity and efficiency. They are also seeking support for digitalisation, which will help them to connect with global buyers and suppliers more easily.
The demand for duty rationalisation and other support measures comes at a time when the Indian economy is facing significant challenges. The country’s exports have been affected by the global economic slowdown, and the industry is facing intense competition from other countries. The government has taken several measures to support the export sector, including the introduction of the Merchandise Exports from India Scheme (MEIS) and the Service Exports from India Scheme (SEIS). However, the industry believes that more needs to be done to support exporters.
The Budget 2026 is expected to provide a boost to the export sector, which is a key driver of the Indian economy. The government is expected to announce measures to support exporters, including customs duty rationalisation, MSME support, and incentives for clean energy and carbon compliance. The industry is hoping that the Budget will address their concerns and provide relief to tariff-hit exporters.
In conclusion, the upcoming Budget 2026 is crucial for tariff-hit exporters, who are seeking measures like customs duty rationalisation to remain competitive in overseas markets. The industry is urging the government to take steps to mitigate the impact of higher tariffs imposed by countries like the US on Indian exports. The government is expected to announce measures to support exporters, including MSME support, clean energy use, and tech upgrades. The Budget 2026 is expected to provide a boost to the export sector, which is a key driver of the Indian economy.
About the Author
