Tariff-hit exporters seek duty rationalisation in Budget 2026
The upcoming Budget 2026 is expected to be a crucial one for India’s export sector, which has been facing significant challenges due to tariffs imposed by countries like the US. Exporters from tariff-hit sectors such as textiles, apparel, gems and jewellery, and chemicals 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 in the form of duty rationalisation, MSME support, clean energy use, and tech upgrades.
The US has imposed higher tariffs on most Indian exports, affecting several sectors that are crucial to India’s export economy. The textiles and apparel sector, for instance, is one of the largest employment generators in the country, with millions of workers dependent on it for their livelihood. However, the imposition of tariffs by the US has made it difficult for Indian exporters to compete with their counterparts from other countries. The gems and jewellery sector is another area that has been significantly impacted, with exports declining sharply due to the tariffs.
The chemicals sector is also facing similar challenges, with the US imposing tariffs on several chemical products imported from India. This has affected the competitiveness of Indian chemical exporters, who are finding it difficult to penetrate the US market due to the high tariffs. The industry is seeking relief in the form of duty rationalisation, which would help to reduce the cost of exports and make Indian products more competitive in the global market.
The Micro, Small and Medium Enterprises (MSME) sector is also seeking support from the government in the form of easier access to credit, subsidies, and other incentives. The MSME sector is a crucial part of India’s export economy, with many small and medium-sized enterprises engaged in export activities. However, the sector is facing significant challenges due to the lack of access to credit and other resources, which is making it difficult for them to compete with larger exporters.
In addition to duty rationalisation and MSME support, the industry is also seeking relief in the form of clean energy use and tech upgrades. The use of clean energy is becoming increasingly important for exporters, as many countries are now insisting on sustainable and environmentally-friendly practices. The industry is seeking incentives and subsidies to adopt clean energy sources such as solar and wind power, which would help to reduce their carbon footprint and make them more competitive in the global market.
Tech upgrades are also essential for exporters, as they need to stay up-to-date with the latest technologies and trends to remain competitive. The industry is seeking support from the government in the form of subsidies and incentives to upgrade their technology and infrastructure, which would help to improve their productivity and efficiency.
The government has been taking several steps to support the export sector, including the introduction of new schemes and initiatives such as the Production Linked Incentive (PLI) scheme. The PLI scheme provides incentives to exporters to produce goods in India, which would help to increase domestic production and reduce dependence on imports. The scheme has been successful in several sectors, including electronics and pharmaceuticals, and is expected to play a crucial role in promoting India’s export economy.
However, despite these efforts, the export sector is still facing significant challenges due to the tariffs imposed by countries like the US. The industry is urging the government to take more steps to support exporters, including duty rationalisation, MSME support, clean energy use, and tech upgrades. The government needs to take a comprehensive approach to address the challenges faced by the export sector, which would help to promote India’s export economy and increase the country’s share in global trade.
In conclusion, the upcoming Budget 2026 is a crucial one for India’s export sector, which is facing significant challenges due to tariffs imposed 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 seeking MSME support, clean energy use, and tech upgrades to promote India’s export economy. The government needs to take a comprehensive approach to address the challenges faced by the export sector, which would help to promote India’s export economy and increase the country’s share in global trade.
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