Tariff-hit exporters seek duty rationalisation in Budget 2026
The Indian export sector is facing significant challenges due to the imposition of higher tariffs by countries like the US on most Indian exports. This has severely affected various sectors such as textiles, apparel, gems and jewellery, and chemicals, among others. In light of these developments, exporters from tariff-hit sectors are seeking measures like customs duty rationalisation to remain competitive in overseas markets in the upcoming Budget 2026. According to a report by Moneycontrol, the industry is urging the government to provide relief and support to help them navigate these difficult times.
The US has imposed higher tariffs on Indian exports, which has resulted in a significant decline in exports from these sectors. The textiles and apparel sector, for instance, has been hit hard by the tariffs, with exports declining by over 10% in the past year. Similarly, the gems and jewellery sector has also seen a decline in exports due to the tariffs. The chemicals sector, which is another significant contributor to India’s exports, has also been affected by the tariffs.
In this context, exporters are seeking measures like customs duty rationalisation to help them remain competitive in overseas markets. They are urging the government to reduce customs duties on raw materials and intermediates to help bring down the cost of production. This, they argue, will help them compete with other countries that have lower production costs. Additionally, they are seeking relief from carbon compliance, which has added to their costs.
The industry is also urging for support to Micro, Small and Medium Enterprises (MSMEs), which are the backbone of the export sector. MSMEs are facing significant challenges due to the tariffs and are in need of support to help them survive. The government has been providing support to MSMEs through various schemes, but more needs to be done to help them navigate these difficult times.
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, exporters are seeking incentives to adopt clean energy sources like solar and wind power. This, they argue, will not only help reduce their carbon footprint but also bring down their energy costs.
Furthermore, the industry is seeking support for technology upgradation to help them remain competitive in overseas markets. With the increasing use of technology in manufacturing and exports, it is essential for Indian exporters to upgrade their technology to remain competitive. The government has been providing support for technology upgradation through various schemes, but more needs to be done to help the industry adopt the latest technologies.
In conclusion, the Indian export sector is facing significant challenges due to the imposition of higher tariffs by countries like the US. Exporters from tariff-hit sectors are seeking measures like customs duty rationalisation to remain competitive in overseas markets. The industry is also urging for support to MSMEs, clean energy use, and tech upgrades to help them navigate these difficult times. It remains to be seen how the government will respond to these demands in the upcoming Budget 2026.
The government has been taking various measures to support the export sector, including providing incentives and subsidies to exporters. However, more needs to be done to help the industry remain competitive in overseas markets. The imposition of higher tariffs by countries like the US has created a challenging environment for Indian exporters, and it is essential for the government to provide support to help them navigate these challenges.
The use of clean energy is another area where the government can provide support to the industry. With the increasing focus on sustainability and reducing carbon footprint, it is essential for Indian exporters to adopt clean energy sources like solar and wind power. The government can provide incentives to exporters to adopt clean energy sources, which will not only help reduce their carbon footprint but also bring down their energy costs.
Technology upgradation is also essential for Indian exporters to remain competitive in overseas markets. The government can provide support for technology upgradation through various schemes, including providing subsidies and incentives to exporters. This will help the industry adopt the latest technologies and remain competitive in overseas markets.
In addition to these measures, the government can also provide support to MSMEs, which are the backbone of the export sector. MSMEs are facing significant challenges due to the tariffs and are in need of support to help them survive. The government can provide support to MSMEs through various schemes, including providing subsidies and incentives to help them navigate these difficult times.
In conclusion, the Indian export sector is facing significant challenges due to the imposition of higher tariffs by countries like the US. Exporters from tariff-hit sectors are seeking measures like customs duty rationalisation to remain competitive in overseas markets. The industry is also urging for support to MSMEs, clean energy use, and tech upgrades to help them navigate these difficult times. The government needs to provide support to the industry to help them remain competitive in overseas markets.
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