Customs Overhaul on the Horizon: Finance Minister Sets Reform Agenda

Finance Minister Nirmala Sitharaman announced major reforms for the customs sector, emphasizing simplification and transparency. The government aims to rationalize customs duties, aligning them with income tax virtues. Upcoming Budget 2026 might reveal plans, amidst depreciation concerns of the rupee against the dollar and optimistic GDP growth predictions.

As India prepares for Budget 2026, Finance Minister Nirmala Sitharaman has prioritized the simplification of customs as a significant reform. The announcement came during her address at the HT Leadership Summit, where she highlighted the need to streamline customs procedures to enhance transparency and ease compliance burdens.

In recent years, the government has implemented various reforms, including adjustments to income tax and GST, aiming to stimulate consumption by increasing disposable income. The minister stressed that customs duty rate rationalization will be pivotal in the upcoming budget, likely unveiled on February 1, as part of an overall effort to reduce cumbersome processes.

Sitharaman also addressed the economic landscape, noting the rupee's depreciation against the dollar and projecting a GDP growth of 7 percent or more for the current fiscal year. This optimism is bolstered by a strong performance in the services sector and a significant factory production uplift, credited to anticipated consumer demand post-GST rate cuts.

(With inputs from agencies.)