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 will help them remain competitive in overseas markets. The imposition of higher tariffs by countries like the United States has severely impacted Indian exports, particularly in sectors such as textiles, apparel, gems and jewellery, and chemicals. In this context, exporters are seeking relief in the form of customs duty rationalisation, among other measures, to mitigate the adverse effects of tariffs and stay afloat in the global market.
The US has been instrumental in imposing higher tariffs on most Indian exports, which has resulted in a significant decline in exports from these sectors. The textile industry, for instance, has been hit hard, with exports plummeting due to the high tariffs imposed by the US. Similarly, the gems and jewellery sector has also suffered, with exporters struggling to compete with their counterparts from other countries that enjoy lower tariffs. The chemical industry has not been spared either, with higher tariffs making Indian exports less competitive in the global market.
In this challenging environment, exporters are pinning their hopes on the upcoming Budget to provide some relief. They are seeking measures such as customs duty rationalisation, which would help reduce the burden of tariffs and make Indian exports more competitive. The industry is also urging the government to provide support to Micro, Small, and Medium Enterprises (MSMEs), which are the backbone of the export sector. MSMEs play a crucial role in generating employment and contributing to the country’s export earnings, and their growth is essential for the overall health of the economy.
Another key area that exporters are focusing on is the use of clean energy. With the world increasingly moving towards sustainable and environmentally friendly practices, Indian exporters are keen to adopt clean energy sources to reduce their carbon footprint. However, the high cost of transitioning to clean energy is a significant barrier, and exporters are seeking relief in the form of subsidies or other incentives to make this transition smoother. The use of clean energy not only helps reduce the environmental impact of industries but also makes them more competitive in the global market, where consumers are increasingly demanding sustainable products.
In addition to these measures, exporters are also seeking support for technological upgradation. The rapid pace of technological change has made it essential for industries to stay ahead of the curve and adopt the latest technologies to remain competitive. However, the high cost of technological upgradation is a significant challenge, particularly for MSMEs, which often lack the resources to invest in new technologies. Exporters are urging the government to provide support for technological upgradation, which would help them improve their productivity, efficiency, and competitiveness in the global market.
The Budget for 2026 is expected to be a crucial one for Indian exporters, who are facing significant challenges in the form of higher tariffs and intense competition in overseas markets. The government’s response to these challenges will be closely watched, and exporters are hoping that the Budget will provide the necessary relief and support to help them navigate these difficult times. With the right measures in place, Indian exporters can regain their competitiveness and continue to play a vital role in the country’s economic growth.
In conclusion, the upcoming Budget is a critical opportunity for the government to provide relief to tariff-hit exporters and support their growth and competitiveness. By rationalising customs duties, providing support to MSMEs, encouraging the use of clean energy, and supporting technological upgradation, the government can help Indian exporters overcome the challenges they face and remain competitive in the global market. As the Indian economy continues to grow and evolve, the role of exporters will become increasingly important, and it is essential that the government provides them with the necessary support and relief to thrive.
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