Tariff-hit exporters seek duty rationalisation in Budget 2026
As the Indian government prepares to unveil its Budget for 2026, exporters from various sectors are pinning their hopes on measures that will help them remain competitive in overseas markets. The imposition of higher tariffs by countries like the United States has severely impacted Indian exports, with sectors such as textiles, apparel, gems and jewellery, and chemicals bearing the brunt. In this context, exporters are seeking customs duty rationalisation, among other measures, to stay afloat in the global market.
The US has been instrumental in imposing higher tariffs on most Indian exports, citing various reasons such as trade deficits and intellectual property concerns. This has resulted in a significant decline in Indian exports to the US, with many exporters struggling to cope with the increased tariffs. The situation is further exacerbated by the fact that other countries, such as China, have been able to negotiate better trade deals with the US, leaving Indian exporters at a disadvantage.
In light of these challenges, the industry is urging the government to introduce measures that will help them compete more effectively in the global market. One of the key demands is for customs duty rationalisation, which would involve simplifying and reducing the complex tariff structure that currently applies to various products. This would not only make Indian exports more competitive but also reduce the compliance burden on exporters.
Another area of concern for exporters is the issue of carbon compliance. With many countries, including the US, imposing carbon taxes and other environmental regulations, Indian exporters are facing increasing pressure to comply with these norms. However, the cost of compliance can be prohibitively expensive, particularly for small and medium-sized enterprises (SMEs). The industry is therefore seeking relief from the government in the form of subsidies or other incentives to help them meet these environmental regulations.
The importance of supporting SMEs cannot be overstated, as they form the backbone of the Indian export sector. Many SMEs are struggling to survive in the face of increased tariffs and compliance costs, and the government’s support is crucial to their survival. The industry is therefore urging the government to introduce measures such as easy access to credit, tax breaks, and other incentives to help SMEs stay afloat.
In addition to these measures, the industry is also seeking support for the adoption of clean energy and technology upgrades. With the global market increasingly demanding sustainable and environmentally friendly products, Indian exporters need to invest in clean energy and other technologies to remain competitive. The government can play a crucial role in supporting this transition by providing subsidies, tax breaks, and other incentives for the adoption of clean energy and technology upgrades.
The upcoming Budget provides an opportunity for the government to address these concerns and introduce measures that will support the export sector. The industry is hoping that the government will take a holistic approach to supporting exporters, rather than introducing piecemeal measures that may not have a significant impact. By introducing customs duty rationalisation, supporting SMEs, and promoting the adoption of clean energy and technology upgrades, the government can help Indian exporters remain competitive in the global market.
In conclusion, the imposition of higher tariffs by countries like the US has created a challenging environment for Indian exporters. However, with the right support from the government, the industry can navigate these challenges and continue to grow and thrive. The upcoming Budget provides an opportunity for the government to introduce measures that will support the export sector, and the industry is hoping that the government will take a proactive approach to addressing their concerns.
As the government prepares to unveil its Budget for 2026, exporters from tariff-hit sectors are watching with bated breath, hoping that their concerns will be addressed. With the right measures in place, Indian exporters can continue to play a vital role in the country’s economy, creating jobs and generating revenue. The government’s support is crucial to their success, and the industry is hoping that the Budget will provide the necessary relief and support to help them stay competitive in the global market.
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