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. According to a report by Moneycontrol, these exporters are seeking customs duty rationalisation, among other relief measures, to mitigate the impact of higher tariffs imposed by countries like the US.
The US has recently imposed higher tariffs on most Indian exports, affecting sectors such as textiles, apparel, gems and jewellery, and chemicals. This move has dealt a significant blow to Indian exporters, who are already struggling to cope with the challenges of a global economic slowdown. The industry is now urging the government to take concrete steps to support them in the upcoming Budget.
One of the key demands of the exporters is customs duty rationalisation. They argue that the current duty structure is complex and often leads to inverted duty structures, making it difficult for them to compete with other countries. For instance, the duty on raw materials is often higher than the duty on finished goods, which increases the cost of production for Indian exporters. By rationalising customs duties, the government can help reduce the cost of production and make Indian exports more competitive in the global market.
Another area where exporters are seeking support is in the Micro, Small, and Medium Enterprises (MSME) sector. MSMEs are the backbone of India’s export industry, and they have been disproportionately affected by the tariff hikes. The industry is urging the government to provide additional support to MSMEs, such as easier access to credit, subsidies, and other incentives. This can help MSMEs to scale up their operations and become more competitive in the global market.
The use of clean energy is another area where exporters are seeking relief. With the increasing focus on sustainability and reducing carbon footprint, many countries are imposing carbon compliance norms on imports. Indian exporters are finding it challenging to meet these norms, which are not only costly but also time-consuming. The industry is urging the government to provide incentives for the use of clean energy, such as subsidies for solar panels or wind turbines, to help them meet the carbon compliance norms.
Technology upgradation is also a critical area where exporters are seeking support. The global export market is becoming increasingly competitive, and Indian exporters need to adopt the latest technologies to remain ahead of the curve. The industry is urging the government to provide incentives for technology upgradation, such as subsidies for automation, artificial intelligence, and other digital technologies. This can help Indian exporters to improve their productivity, efficiency, and quality, making them more competitive in the global market.
The textiles and apparel sector is one of the most affected by the tariff hikes. The US has imposed higher tariffs on Indian textile and apparel exports, which has led to a significant decline in exports. The industry is urging the government to provide relief measures, such as duty-free access to raw materials, to help them cope with the tariff hikes.
The gems and jewellery sector is another area where exporters are seeking support. The US has imposed higher tariffs on Indian gem and jewellery exports, which has affected the sector significantly. The industry is urging the government to provide incentives, such as subsidies for gold and diamond imports, to help them remain competitive.
The chemicals sector is also seeking relief measures, such as duty-free access to raw materials, to help them cope with the tariff hikes. The industry is urging the government to provide support for research and development, to help them develop new and innovative products that can compete in the global market.
In conclusion, the upcoming Budget 2026 is a critical opportunity for the Indian government to provide relief measures to tariff-hit exporters. The industry is seeking customs duty rationalisation, MSME support, clean energy use, and tech upgrades to remain competitive in overseas markets. By providing these relief measures, the government can help Indian exporters to scale up their operations, improve their productivity, and increase their exports. This, in turn, can help to boost India’s economic growth, create jobs, and increase foreign exchange earnings.
As the government prepares to unveil the Budget, it is essential to listen to the concerns of the export industry and provide them with the necessary support. The export industry is a critical sector of the Indian economy, and it is essential to ensure that it remains competitive and vibrant. By providing the right relief measures, the government can help Indian exporters to thrive in the global market and contribute to the country’s economic growth and development.
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