Union Budget 2026 Live: Customs Duty as a Tool to Strengthen Manufacturing and Exports

Presenting the Union Budget 2026, Finance Minister Nirmala Sitharaman said her proposals on Customs and Central Excise are aimed at simplifying the tariff structure, supporting domestic manufacturing, enhancing export competitiveness, and correcting duty inversions.

She added that, as part of the effort to phase out long-standing customs duty exemptions, the government has proposed withdrawing certain exemptions on goods that are already being manufactured in India or where imports are minimal.

To make duty determination easier, the Finance Minister also proposed moving certain effective duty rates from customs notifications directly into the tariff schedule, thereby streamlining the process of identifying applicable rates.