Tariff-hit exporters seek duty rationalisation in Budget 2026
The Indian export sector has been facing significant challenges in recent times, particularly with the imposition of higher tariffs by countries like the US on most Indian exports. This has severely affected various sectors, including textiles, apparel, gems and jewellery, and chemicals, among others. As the government prepares to unveil the Budget for 2026, exporters from these tariff-hit sectors 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 provide relief to micro, small, and medium enterprises (MSMEs) and support the adoption of clean energy and technology upgrades. The exporters are hoping that the upcoming Budget will address their concerns and provide them with the necessary support to navigate the challenging global trade landscape.
The US has been one of India’s largest export markets, but the imposition of higher tariffs has made it difficult for Indian exporters to compete with their counterparts from other countries. The textiles and apparel sector, for instance, has been hit hard by the tariffs, with many exporters struggling to maintain their market share. The gems and jewellery sector has also been affected, with exporters facing difficulties in exporting their products to the US due to the high tariffs.
The chemicals sector is another area that has been impacted by the tariffs, with many Indian exporters facing challenges in exporting their products to the US. The sector is a significant contributor to India’s export basket, and the tariffs have resulted in a decline in exports, affecting the livelihoods of thousands of people employed in the industry.
To mitigate the impact of the tariffs, exporters are seeking customs duty rationalisation, which would help reduce the cost of production and make Indian exports more competitive in the global market. They are also seeking support for MSMEs, which are the backbone of the Indian economy and play a crucial role in the export sector.
MSMEs are facing significant challenges due to the tariffs, and the government’s support is essential to help them navigate these difficulties. The industry is urging the government to provide relief to MSMEs, including access to credit, technology upgrades, and training programs to enhance their competitiveness.
Another area that the exporters are focusing on is the adoption of clean energy and technology upgrades. With the increasing emphasis on sustainability and reducing carbon footprint, exporters are seeking support to transition to cleaner energy sources and adopt new technologies that can help reduce their environmental impact.
The use of clean energy can help reduce the cost of production and make Indian exports more competitive in the global market. Additionally, the adoption of new technologies can help exporters improve their efficiency and productivity, enabling them to compete more effectively with their global counterparts.
The government has been actively promoting the use of clean energy and technology upgrades, and the exporters are hoping that the upcoming Budget will provide additional support for these initiatives. The industry is urging the government to provide incentives for the adoption of clean energy, including tax breaks, subsidies, and low-interest loans.
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, MSME support, clean energy use, and tech upgrades to remain competitive in overseas markets. The government’s support is essential to help the exporters navigate these challenges, and the industry is hoping that the upcoming Budget will provide the necessary relief and support.
As the government prepares to unveil the Budget for 2026, it is essential to consider the concerns of the export sector and provide them with the necessary support to thrive in the global market. The use of clean energy, technology upgrades, and MSME support can help Indian exporters compete more effectively with their global counterparts and maintain their market share.
The government’s initiatives to promote the use of clean energy and technology upgrades can also help reduce the environmental impact of the export sector, which is essential for sustainable growth and development. By providing the necessary support and relief to the export sector, the government can help boost economic growth, create jobs, and increase India’s exports, which is essential for the country’s overall development.
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