Tariff-hit exporters seek duty rationalisation in Budget 2026
As the Indian government prepares to unveil the Budget for 2026, exporters from various tariff-hit sectors are eagerly awaiting measures that can help them remain competitive in overseas markets. The recent imposition of higher tariffs on most Indian exports by the US has significantly impacted sectors such as textiles, apparel, gems and jewellery, and chemicals. In order to mitigate the effects of these tariffs and stay ahead in the global market, exporters are seeking relief in the form of customs duty rationalisation, among other measures.
The US has been one of India’s largest trading partners, and the increased tariffs have resulted in a substantial decline in exports from these sectors. The textile industry, for instance, has been particularly hard hit, with exports to the US declining by a significant margin. Similarly, the gems and jewellery sector has also seen a notable drop in exports, affecting the livelihoods of thousands of workers employed in the industry. The chemical sector, which is a critical component of various manufacturing processes, has also been impacted, leading to higher production costs and reduced competitiveness.
In light of these challenges, exporters are urging the government to introduce measures that can help them regain their competitive edge in the global market. One of the key demands is for customs duty rationalisation, which would involve reducing or eliminating duties on certain imports that are critical for export-oriented industries. This would not only help reduce production costs but also enable exporters to compete more effectively with their global counterparts.
Another area of focus for exporters is the need for support to Micro, Small, and Medium Enterprises (MSMEs). MSMEs are the backbone of India’s export sector, and they have been disproportionately affected by the tariff hikes. The government is being urged to provide targeted support to MSMEs, including access to finance, technology, and training, to help them scale up their operations and become more competitive.
The use of clean energy is another critical area that exporters are emphasizing. As the world transitions towards a more sustainable and environmentally-friendly economy, Indian exporters need to adapt to these changing trends. The government is being urged to provide incentives and support for the adoption of clean energy technologies, such as solar and wind power, to reduce the carbon footprint of export-oriented industries. This not only helps reduce the environmental impact of these industries but also enhances their competitiveness in the global market.
Furthermore, exporters are also seeking support for technology upgradation, which is critical for improving productivity and efficiency. The government is being urged to provide funding and support for research and development, as well as the adoption of new technologies, such as artificial intelligence, robotics, and the Internet of Things (IoT). This would enable exporters to stay ahead of the curve and compete more effectively with their global counterparts.
In addition to these measures, exporters are also seeking relief from carbon compliance costs, which are becoming an increasingly significant burden. As countries around the world impose carbon taxes and other environmental regulations, Indian exporters need to comply with these requirements to remain competitive. The government is being urged to provide support and incentives to help exporters meet these compliance costs, which would help reduce their financial burden and enhance their competitiveness.
In conclusion, the upcoming Budget for 2026 presents a critical opportunity for the Indian government to provide relief to tariff-hit exporters. By introducing measures such as customs duty rationalisation, MSME support, clean energy adoption, technology upgradation, and carbon compliance relief, the government can help exporters regain their competitive edge in the global market. As the Indian economy continues to grow and evolve, it is essential that the government provides targeted support to export-oriented industries to help them thrive and contribute to the country’s economic development.
The demands of exporters are not only critical for the survival of their industries but also for the overall growth and development of the Indian economy. As the government prepares to unveil the Budget for 2026, it is essential that they take into account the concerns and demands of exporters and provide them with the necessary support and relief. Only then can Indian exporters continue to thrive and compete in the global market, contributing to the country’s economic growth and development.
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