Home / Business and Economy / Budget 2026: Export Boost & Manufacturing Surge
Budget 2026: Export Boost & Manufacturing Surge
1 Feb
Summary
- Customs duty rationalization aims to boost exports and domestic manufacturing.
- Basic customs duty removed on capital goods and strategic inputs.
- Duty-free import limit for seafood processing inputs increased to 3%.
The Union Budget 2026-27 introduces significant customs duty rationalization initiatives designed to propel India's export capabilities and fortify its domestic manufacturing base. Experts anticipate these changes will foster growth across strategic sectors.
The budget has eliminated basic customs duty on a variety of capital goods and crucial inputs, thereby reducing production costs. This move is complemented by an increase in the duty-free import limit for inputs used in seafood processing, raising it from 1% to 3% of the export value.
Industry leaders have lauded these provisions, emphasizing their role in enhancing global competitiveness and promoting self-reliance. Reforms in customs procedures and documentation are expected to streamline business operations, decrease transaction costs, and improve overall ease of doing business for Indian exporters.
