Tariff-hit exporters seek duty rationalisation in Budget 2026
The upcoming Budget 2026 has raised hopes 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 introduce measures that will help them navigate the challenges posed by higher tariffs imposed by countries like the US. The US has imposed higher tariffs on most Indian exports, affecting sectors like textiles, apparel, gems and jewellery, and chemicals.
The tariffs imposed by the US have had a significant impact on Indian exporters, making it difficult for them to compete in the global market. The industry is seeking relief in the form of customs duty rationalisation, which will help reduce the cost of production and make Indian exports more competitive. The exporters are also seeking support for Micro, Small, and Medium Enterprises (MSMEs), which are the backbone of the Indian economy.
The MSME sector is a significant contributor to India’s exports, and any support provided to this sector will have a positive impact on the overall export performance of the country. The industry is urging the government to provide measures like easy access to credit, tax exemptions, and subsidies to help MSMEs overcome the challenges posed by higher tariffs.
Another area where the industry is seeking support is in the use of clean energy. With the increasing focus on sustainability and reducing carbon footprint, the industry is urging the government to provide incentives for the use of clean energy. This will not only help reduce the carbon footprint of Indian exports but also make them more attractive to countries that are increasingly looking for sustainable and environmentally friendly products.
The industry is also seeking support for technology upgradation, which is essential for remaining competitive in the global market. The use of latest technology will help Indian exporters improve their productivity, reduce costs, and enhance the quality of their products. This will enable them to compete more effectively with exporters from other countries and increase their share in the global market.
The impact of higher tariffs on Indian exports cannot be overstated. The US is one of the largest markets for Indian exports, and any increase in tariffs can have a significant impact on the Indian economy. The industry is therefore urging the government to engage with the US and other countries to negotiate a reduction in tariffs and provide a more favorable trade environment for Indian exporters.
The government has already taken some steps to support exporters, including the introduction of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. The scheme provides a refund of duties and taxes to exporters, which will help reduce their cost of production and make them more competitive in the global market.
However, the industry is seeking more support, including the extension of the RoDTEP scheme to more sectors and the provision of additional incentives for exporters. The industry is also urging the government to simplify the tax regime and reduce the compliance burden on exporters.
In conclusion, the upcoming Budget 2026 provides an opportunity for the government to provide relief to tariff-hit exporters and support the growth of the Indian economy. The industry is seeking measures like customs duty rationalisation, MSME support, clean energy use, and tech upgrades to remain competitive in overseas markets. The government must engage with the industry and provide the necessary support to help Indian exporters navigate the challenges posed by higher tariffs and increase their share in the global market.
The government’s support to the export sector is crucial for the growth of the Indian economy, and any measures introduced in the Budget 2026 will have a significant impact on the industry. The industry is hopeful that the government will provide the necessary relief and support to help Indian exporters remain competitive and increase their exports.
As the Budget 2026 approaches, the industry is watching with bated breath, hoping that the government will introduce measures that will provide relief to tariff-hit exporters. The government must recognize the importance of the export sector to the Indian economy and provide the necessary support to help the industry grow and thrive.
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