Customs duty changes in Budget part of ongoing reforms, not linked to US tariffs, says FM Sitharaman

Finance Minister Nirmala Sitharaman

• Customs duty changes in Budget 2026-27 not influenced by US policy decisions
• Measures to support MSMEs and labor-intensive sectors like textiles and seafood
• Budget cuts duties on personal imports, exempts 17 cancer medicines.

Did our AI summary help?

Finance Minister Nirmala Sitharaman February 2 said that the customs duty changes in the Budget for 2026-27 were not influenced by any policy decisions of the United States and are part of the Indian government’s ongoing efforts to rationalise such levies.

The minister said customs duty adjustments have been made consistently in successive Budgets and the latest changes continue that approach.

“We have changed customs and we have making custom changes in every Budget for a while now and we have continued the same in this Budget,” she said.

Sitharaman added that these measures are part of a broader policy framework aimed at supporting Indian citizens and businesses.

The minister also said the government did not assess the potential impact of US tariff actions while framing Budget proposals.

“We did not make any assessment of the impact of US tariffs to factor them into Budget decisions,” she said.

According to the minister, changes in customs duties and other policy measures for labour-intensive sectors were primarily designed to support micro, small and medium enterprises (MSMEs), which are among the largest generators of employment in the economy.

The Budget for 2026-27, presented on February 1, unveiled a series of measures aimed at easing pressure on labour-intensive sectors such as marine products, leather and textiles, which have been among the most exposed to the US’s steeper tariffs of 50 percent imposed from mid-2025.

Sitharaman also announced several customs duty changes, including cuts on goods imported for personal use, exemptions for 17 cancer medicines, and higher duty‑free input limits for seafood and footwear exporters.

The Budget also extended exemptions on capital goods for sectors like lithium‑ion batteries and nuclear power, and offered tariff concessions on components for electronics, aviation, and defence, aiming to support domestic industry and promote exports.