Union Budget 2026: Customs duty rationalisation to help boost exports, promote manufacturing, say experts

New Delhi: The announcements in Budget with regard to customs duty rationalisation will help boost exports and promote domestic manufacturing, experts and exporters said. The Union Budget 2026-27 focuses on lowering costs for strategic manufacturing, clean energy, defence, healthcare, and exports — while selectively raising tariffs to protect a few consumer goods, they said.

Budget 2026 Highlights: Here’s the fine print

Budget has removed basic customs duty on a range of capital goods and strategic inputs. It has also raised the duty-free import limit for inputs used in seafood processing from 1 per cent to 3 per cent of export value, lowering costs.

Anand Ramanathan, Partner & Consumer Industry Leader, Deloitte India, said securing inputs in natural fibres through the national fibre scheme will help derisk exports from disruptions in global supply chains.

A Sakthivel, Chairman, Apparel Export Promotion Council (AEPC), said this Budget provides a roadmap for strengthening India’s textile and apparel ecosystem, with a strong focus on self-reliance, sustainability, employment generation and global competitiveness.

“The emphasis on providing liquidity, ease of exports, particularly through customs-related reforms and simplified documentation procedures, will reduce transaction costs, enhance efficiency, and improve the overall ease of doing business for exporters,” Sakthivel said. Council for Leather Exports (CLE) said the measures will help boost exports and promote domestic manufacturing.

“The provision made to extend the basic customs duty exemption for import of tags, labels, stickers, belts etc. imported by bona fide exporters till 31.3.2028 is a welcome step,” CLE Chairman R K Juneja said.