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NEW DELHI: Seeking to cushion cardinal export sectors from the interaction of steep US tariffs, concern curate Nirmala Sitharaman connected Sunday announced a acceptable of targeted customs and manufacturing measures successful the Union Budget 2026, positioning them arsenic a effect to up to 50% duties imposed by US President Donald Trump connected imports of Indian goods.Union concern curate Nirmala Sitharaman projected reducing the tariff complaint connected each dutiable goods imported for idiosyncratic usage from 20% to 10%, a determination seen arsenic portion of a broader effort to recalibrate India's commercialized posture amid rising planetary risks.Follow unrecorded fund updates here
Relief for exporters deed by US duties
With industries specified arsenic textiles and seafood among those affected by the US tariff hit, the Budget introduced measures aimed astatine improving export competitiveness.In enactment with the government's purpose to beforehand exports and assistance the seafood manufacture deed by US tariffs, Sitharaman projected expanding the bounds for duty-free imports of specified inputs utilized for processing seafood for export from 1% to 3% of the FOB worth of the erstwhile year's export turnover.
"I suggest to summation the bounds for duty-free imports of specified inputs utilized for processing oversea foods for export from the existent 1 per cent to 3 per cent of the FOB worth of the erstwhile year's export turnover," she said. The concern curate added that duty-free imports of specified inputs presently disposable for exports of leather oregon synthetic footwear would besides beryllium extended to exports of footwear uppers."I besides suggest to let duty-free imports of specified inputs, which is presently disposable for exports of leather oregon synthetic footwear, to exports of footwear uppers arsenic well," Sitharaman said successful her Budget speech.
These labour-intensive sectors person faced immense challenges successful the US, which is simply a large export destination, aft Trump's tariff decision.The country's leather and leather products shipments dipped marginally 0.23% to $3.3 cardinal during April-December 2025-26.During April-December 2025, India's seafood exports roseate 15.53% to $6.5 billion, up from $5.67 cardinal successful the aforesaid play past year.
Duty exemptions to propulsion manufacturing
As portion of a larger manufacturing push, Sitharaman announced a drawstring of basal customs work exemptions.In a boost to the defence sector, she said earthy materials imported for the manufacture of craft parts utilized successful maintenance, repair oregon overhaul (MRO) requirements by units successful the defence assemblage would beryllium exempted from basal customs duty.The Budget has provided for exempting customs work connected components and parts required for manufacturing civilian grooming and different aircraft. It besides projected work exemption connected earthy materials imported for manufacturing craft parts utilized successful maintenance, repair and overhaul by defence assemblage units.The concern curate projected exempting BCD connected specified parts utilized successful the manufacture of microwave ovens.The concern curate besides projected a basal customs work exemption to superior goods utilized for manufacturing lithium-ion cells for batteries and captious minerals, extending the work exemption fixed to superior goods utilized for manufacturing lithium-ion cells to those utilized for manufacturing lithium-ion cells for artillery vigor retention systems arsenic well.She besides projected exempting basal customs work connected the import of sodium antimonate for usage successful the manufacturing of star glass, and providing a basal customs work exemption to the import of superior goods required for the processing of captious minerals successful India.In the atomic powerfulness segment, Sitharaman projected extending the basal customs work exemption connected import of goods required for atomic powerfulness projects till 2035, expanding the payment to "all atomic plants irrespective of their capacity."
Rare world corridors for mineral-rich states
Sitharaman besides projected enactment for mineral-rich states specified arsenic Odisha, Kerala, Andhra Pradesh and Tamil Nadu to found dedicated uncommon world corridors, arsenic the authorities highlighted respective initiatives linked to captious minerals.
Spending propulsion portion holding fiscal line
The Budget besides marked a spending propulsion aimed astatine countering planetary risks. Capital expenditure volition beryllium accrued by 9% to Rs 12.2 trillion successful the fiscal twelvemonth opening April 1, with absorption areas including railways, tiny businesses and health.The fiscal shortage volition beryllium curbed to 4.3% of GDP successful the coming twelvemonth from an estimated 4.4% successful the existent year, portion authorities indebtedness is projected to travel down to 55.6% from 56.1%, Sitharaman said."Our archetypal work is to accelerate and prolong economical maturation by enhancing productivity and competitiveness and gathering resilience to volatile planetary dynamics," she said earlier.Sitharaman presented the Union Budget for a grounds ninth time.
