India Cuts Customs Duty Rates: Steps Towards Competitive Global Trade

India has reduced its average customs duty rate from 11.65% to 10.66%, aligning closer with Southeast Asian levels. The adjustment aims to simplify India's tariff structure, boost industry competitiveness, and dispel high tariff criticisms. Further duty rationalization will enhance trade and ease business operations.

In a strategic move to enhance trade competitiveness, India has slashed its average customs duty rate from 11.65% to 10.66%, aligning more closely with Southeast Asian countries. This development, announced by CBIC Chairman Sanjay Kumar Agarwal, aims to streamline India's tariff framework and simplify the tax regime for businesses.

During an industry interaction, Agarwal highlighted the reduction of basic customs duty to dispel the perception held by countries like the United States that India imposes high tariffs. He emphasized the need for a competitive and straightforward tax structure to fortify India's global supply chain integration.

The duty rationalization is part of broader budget measures to ease doing business by reducing tariff rates and ensuring the availability of critical minerals essential for sectors such as semiconductor manufacturing, clean energy, and space programs. These measures support India's industrial growth by lowering import duties on primary minerals and encouraging local recycling efforts.

(With inputs from agencies.)