Finance Minister Nirmala Sitharaman clarified that the recent customs duty adjustments in the 2026-27 Budget are part of India’s ongoing economic reforms to streamline tariffs and are unrelated to US policy decisions. She emphasized that customs duty modifications have been a consistent feature in recent Budgets, including the latest one. These changes are designed within a broader policy framework to support Indian citizens and businesses.
Sitharaman highlighted that the government did not consider the potential impact of US tariff escalations when formulating the Budget proposals. There was no specific assessment made regarding the influence of US tariffs on the Budget decisions, she mentioned.
In a move to simplify the tariff structure, promote domestic manufacturing, enhance export competitiveness, and address duty inversion, the Finance Minister announced a reduction in customs duty on goods imported for personal use from 20% to 10%. Additionally, the Budget includes exemptions on basic customs duty for 17 drugs, particularly for cancer patients, and expands the list of rare diseases eligible for duty exemptions on personal imports of medical items.
The Budget also introduces revisions to baggage clearance rules for international travelers, focusing on improving duty-free allowances and clarifying regulations for temporary goods carriage. Furthermore, the proposal allows honest taxpayers to settle dues and resolve cases by paying an additional amount instead of penalties. The Budget envisions smoother customs processes with minimal intervention to facilitate faster movement of goods and ensure trade certainty.
