Tariff-hit exporters seek duty rationalisation in Budget 2026
As the Union Budget for 2026 approaches, exporters from various sectors are eagerly awaiting measures that can help them remain competitive in overseas markets. The recent imposition of higher tariffs by the US on most Indian exports has severely impacted sectors such as textiles, apparel, gems and jewellery, and chemicals. To mitigate the effects of these tariff hikes, exporters are seeking customs duty rationalisation, among other relief measures, to stay afloat in the global market.
The US tariffs have been a significant blow to Indian exporters, who are struggling to maintain their market share in the face of increasing competition from other countries. The textiles and apparel sector, for instance, is one of the largest employment generators in India, with a significant portion of its production being exported to countries like the US. The higher tariffs have made Indian exports more expensive, rendering them less competitive in the global market.
To address this issue, exporters are urging the government to rationalise customs 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 exports more competitive in the global market. Additionally, the industry is seeking relief from carbon compliance costs, which have increased significantly in recent years.
The Micro, Small, and Medium Enterprises (MSME) sector, which is a significant contributor to India’s export basket, is also seeking support from the government. MSMEs are facing significant challenges in terms of accessing credit, technology, and markets, which is impacting their ability to export. The industry is urging the government to provide support to MSMEs in the form of easy credit, technology upgradation, and market access.
Another area where exporters are seeking support is in the use of clean energy. With the increasing focus on sustainability and reducing carbon footprint, exporters are looking to transition to cleaner sources of energy to power their production processes. However, the high cost of renewable energy is a significant barrier to adoption. The industry is seeking support from the government in the form of subsidies or incentives to encourage the use of clean energy.
Technology upgradation is also a key area where exporters are seeking support. With the increasing use of technology in production processes, exporters need to invest in the latest technologies to remain competitive. However, the high cost of technology upgradation is a significant challenge for many exporters, particularly MSMEs. The industry is urging the government to provide support in the form of subsidies or incentives to encourage technology upgradation.
The upcoming Budget provides an opportunity for the government to address the concerns of exporters and provide relief measures to support the sector. The industry is hopeful that the government will take into account the challenges faced by exporters and provide measures to support the sector. Some of the key measures that the industry is seeking include:
- Customs duty rationalisation to reduce the cost of production and make Indian exports more competitive
- Relief from carbon compliance costs to reduce the burden on exporters
- Support to MSMEs in the form of easy credit, technology upgradation, and market access
- Incentives to encourage the use of clean energy
- Support for technology upgradation to help exporters remain competitive
Overall, the upcoming Budget is a critical opportunity for the government to support the export sector and help it navigate the challenges posed by the tariff hikes. The industry is hopeful that the government will take into account the concerns of exporters and provide relief measures to support the sector.
In conclusion, the tariff hikes imposed by the US on Indian exports have had a significant impact on sectors such as textiles, apparel, gems and jewellery, and chemicals. To remain competitive in overseas markets, exporters are seeking measures like customs duty rationalisation, relief from carbon compliance costs, support to MSMEs, incentives to encourage the use of clean energy, and support for technology upgradation. The upcoming Budget provides an opportunity for the government to address the concerns of exporters and provide relief measures to support the sector.
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