The Union Finance Minister proposed duty-free imports of products with specified inputs for marine and leather sector to boost the export from these industries. The government has proposed to raise the limit for duty-free import of inputs used in processing seafood for exports from 1% to 3% from the previous year’s export turnover.
Duty-free imports will be allowed for specified inputs for leather, synthetic footwear and shoe uppers exporters. In addition, exporters of leather, footwear and textile garments will get more time to ship finished goods, with the export period extended from six months to one year.
Moreover, in order to boost investment in battery energy storage systems (BESS), the government proposed to extend custom duty exemptions for capital goods used for lithium-ion cells. The FM also proposed to exempt customs duty on import of sodium antimonate for manufacturing of solar glass.
The country's leather and leather products shipments declined marginally by 0.23% to $3.3 billion during April-December 2025-26. In September 2025, the government had lowered GST on leather goods to 5% from 12%, expecting the sector to see spur in local consumption ahead of festive season. According to the Economic Survey, gross bank credit growth in leather and leather products industry was 3.11% in FY25, whereas between FY21 and FY24, it was around 5.44%