Boosting India's Exports: A Budgetary Blueprint for 2026

Deloitte India recommends rationalizing import duty structures in the upcoming Budget to enhance domestic manufacturing and exports. Key measures include adjusting customs duties, reforming SEZ regulations, and broadening the Phased Manufacturing Program. These steps aim to boost competitiveness, foster value addition, and promote global market presence.

Deloitte India has proposed a strategic overhaul of the import duty framework to propel domestic manufacturing and enhance the nation's export capabilities. Speaking on Tuesday, the firm emphasized that the upcoming Budget should focus on reforms such as adjusting the customs duty structure and increasing funding allocation.

To further invigorate India's export competitiveness, Deloitte suggested reforms to the Special Economic Zone (SEZ) regime. Key recommendations include permitting domestic supply without duty implications, easing sub-contracting rules, and exempting value addition from customs duty. A limited customs amnesty scheme was also proposed to improve common legal challenges.

Among other suggestions, Deloitte highlighted the potential expansion of the Phased Manufacturing Program (PMP) beyond existing sectors like electronics. Partner at Deloitte India, Gulzar Didwania, advocated for a supportive R&D budget and technology upgrades to elevate India in international markets. Attention was also drawn to increasing export market access through an extended Market Access Initiative.

(With inputs from agencies.)