The Budget 2026 may introduce customs amnesty scheme and calibrated input duty corrections that could help exporters, especially the small and medium enterprises to navigate through the challenges arising in global trade set-up, say experts.
“In a weak global trade cycle, efficiency gains—not fiscal spending—are India’s strongest export stimulus. Calibrated input duty corrections, faster duty remissions, and logistics cost neutralization—can enhance export competitiveness without materially straining the fiscal balance,” said Adarsh Somani, Partner, Economic Laws Practice.
Finance Minister Nirmala Sitharaman had previously indicated that the next big reform will be in terms of bringing a complete overhaul of customs, as the whole customs structure needs to be simplified. She even said that bringing more transparency and bringing more ease to the custom regime will be the next focus.
Currently, several export‑oriented manufacturers often struggle with inverted duty structures that raise their costs and hurt competitiveness. And at a tumultuous time, when several Indian exporters have been burdened with heavy tariffs, enhancing the competitiveness and minimizing the cost are the most sought-after demands from the small and medium exporters.
Experts suggest that Budget 2026 can further rationalise customs duties by lowering tariffs on raw materials and correcting distortions in sectors like electronics, textiles, and chemicals, some of which have faced a tariff of 50% from the US.
“End use-based exemptions may also be brought in to ensure benefits are passed on to targeted businesses. Additionally, streamlining of the remaining eight tariff slabs, in continuation to the previous budget, is also expected to further streamline the customs tariff structure,” said Krishan Arora, Partner and Indirect Tax Leader, Grant Thornton Bharat.
Experts suggest that a customs amnesty scheme should also be considered by the government to resolve over Rs 1.5 lakh crore locked in disputes at various levels, which has grown multifold over the past few years. This will free up the business capital locked-in in disputes and provide a boost to businesses in the current volatile trade era.
As the Finance Minister spoke about simplification of the customs to ensure that people don’t find it cumbersome, tax experts suggest that expanding digitalisation and having faceless assessments will help cut clearance delays, ensure uniform treatment across ports and faster assessment processes.
“Integration of ICEGATE, Risk Management System and EDI system into a single platform, which is already on the cards, will streamline data flow and risk‑based clearances,” said Arora. Moreover, the government could also consider linking of customs and GST portals to simplify compliance that will allow seamless credit claims, amendment of bill of entry and reduce duplication, suggested experts.