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 eagerly awaiting measures that can help them remain competitive in overseas markets. The imposition of higher tariffs by the US on most Indian exports has severely impacted sectors such as textiles, apparel, gems and jewellery, and chemicals. In this challenging environment, exporters are seeking relief in the form of customs duty rationalisation, among other measures, to stay afloat.
The US has been increasing tariffs on Indian exports, making it difficult for domestic players to compete with their global counterparts. This has resulted in a decline in exports from India, affecting the livelihoods of millions of people employed in these sectors. The textile industry, for instance, is one of the largest employers in the country, and the increase in tariffs has led to a significant decrease in exports. Similarly, the gems and jewellery sector, which is another major export earner for India, has also been hit hard by the tariff hike.
In this context, exporters are urging the government to rationalise customs duties to make Indian products more competitive in the global market. They are seeking a reduction in duties on raw materials and intermediates used in the production of export goods. This, they believe, will help reduce the cost of production and make Indian products more attractive to foreign buyers.
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 crucial role in the export sector. However, they often face challenges in accessing finance, technology, and other resources, which hinders their ability to compete in the global market. Exporters are urging the government to provide MSMEs with easier access to credit, technology upgradation, and skill development programmes to enhance their competitiveness.
Another area of concern for exporters is the increasing focus on clean energy and carbon compliance. With many countries imposing carbon taxes and other environmental regulations, Indian exporters are finding it challenging to comply with these norms. They are seeking relief from the government in the form of incentives for using clean energy, reducing carbon emissions, and adopting sustainable practices. This, they believe, will help them stay competitive in the global market and also contribute to the country’s environmental goals.
The use of technology is also a key area where exporters are seeking support. With the increasing use of digital platforms and e-commerce, exporters need to upgrade their technology infrastructure to remain competitive. They are seeking government support for technology upgradation, including the adoption of emerging technologies like artificial intelligence, blockchain, and the Internet of Things (IoT).
In the run-up to the Budget, various industry associations and exporters have been engaging with the government to highlight their concerns and suggest measures that can help them overcome the challenges they face. The government, on its part, has been receptive to these concerns and has been working on measures to support the export sector.
The upcoming Budget is expected to provide some relief to exporters, particularly those from tariff-hit sectors. The government is likely to announce measures such as customs duty rationalisation, MSME support, and incentives for clean energy use and technology upgradation. These measures, if implemented effectively, can help Indian exporters regain their competitiveness in the global market and contribute to the country’s economic growth.
In conclusion, the imposition of higher tariffs by the US on Indian exports has created a challenging environment for domestic players. Exporters from tariff-hit sectors are seeking measures like customs duty rationalisation, MSME support, clean energy use, and tech upgrades to remain competitive in overseas markets. The government, in the upcoming Budget, is expected to announce measures that can help exporters overcome these challenges and contribute to the country’s economic growth.
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