Tariff-hit exporters seek duty rationalisation in Budget 2026
As the Indian government prepares to unveil the Budget for 2026, exporters from various sectors are pinning their hopes on measures that will help them remain competitive in overseas markets. The recent imposition of higher tariffs by the US on most Indian exports has dealt a significant blow to sectors such as textiles, apparel, gems and jewellery, and chemicals. In response, industry representatives are seeking customs duty rationalisation, among other relief measures, to mitigate the impact of these tariffs.
The US has been a significant market for Indian exporters, and the increased tariffs have resulted in a substantial decline in exports. The affected sectors are now looking to the government for support to stay afloat. According to reports, exporters are urging the government to announce measures that will help them compete with other countries in the global market. Customs duty rationalisation is at the top of their wish list, as it will enable them to reduce their costs and remain competitive.
The textiles sector, in particular, has been severely impacted by the higher tariffs. Indian textile exporters have been facing stiff competition from countries such as Vietnam and Bangladesh, which have preferential trade agreements with the US. The increased tariffs have further eroded their competitiveness, making it challenging for them to survive in the market. The industry is hoping that the government will announce measures such as customs duty rationalisation and other incentives to help them regain their footing.
Apart from customs duty rationalisation, exporters are also seeking support for Micro, Small, and Medium Enterprises (MSMEs). MSMEs are the backbone of the Indian economy, and they play a significant role in the country’s export sector. However, they often lack the resources and scale to compete with larger players. The industry is urging the government to announce measures such as easy access to credit, tax exemptions, and other incentives to support MSMEs.
Another area of concern for exporters is the increasing focus on clean energy and carbon compliance. Many countries, including the US, are imposing stringent regulations on carbon emissions, and Indian exporters need to comply with these regulations to remain competitive. The industry is seeking relief measures such as subsidies for renewable energy, tax exemptions for green technologies, and other incentives to help them transition to cleaner and more sustainable practices.
Technology upgradation is also a key area of focus for exporters. The Indian export sector is often characterised by low-value-added products, which are highly competitive and subject to fluctuations in global demand. To move up the value chain and compete with other countries, exporters need to invest in technology upgradation and innovation. The industry is urging the government to announce measures such as tax exemptions for research and development, subsidies for technology upgradation, and other incentives to support innovation and entrepreneurship.
The upcoming Budget is expected to provide some relief to tariff-hit exporters. The government has been engaging with industry representatives and other stakeholders to understand their concerns and develop measures to address them. While the exact details of the Budget are still unknown, it is likely that the government will announce a combination of measures to support exporters, including customs duty rationalisation, MSME support, clean energy incentives, and technology upgradation subsidies.
In conclusion, the Indian export sector is facing significant challenges in the wake of higher tariffs imposed by the US. Exporters from tariff-hit sectors such as textiles, apparel, gems and jewellery, and chemicals are seeking measures such as customs duty rationalisation to remain competitive in overseas markets. The industry is also urging the government to announce support measures for MSMEs, clean energy incentives, and technology upgradation subsidies. As the government prepares to unveil the Budget for 2026, exporters are pinning their hopes on a combination of measures that will help them regain their footing in the global market.
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