ENA Sectors 2026-01-14 13:47:01 <p><span style="font-size:14px"><strong>New Delhi, Jan 14 (KNN)</strong> Ahead of the Union Budget 2026 27, Deloitte India said rationalising import duties and raising budgetary allocations could significantly strengthen domestic manufacturing and boost exports, adding that the Budget should build on ongoing efforts to enhance manufacturing capacity and export competitiveness.</span></p> <p><span style="font-size:14px"><strong>Call for Customs Duty Rationalisation</strong><br /> Deloitte India said sustaining export growth would require targeted customs duty reforms to promote domestic value addition, recommending lower duties on parts and components where manufacturing capacity is adequate, and higher duties on finished goods.</span></p> <p><span style="font-size:14px">A key measure would be to further rationalise the customs duty structure, lowering duties on parts and components in sectors where India has achieved optimal manufacturing capacity, while increasing duties on finished goods, said Gulzar Didwania, Partner, Deloitte India. </span></p> <p><span style="font-size:14px">He added that this approach would discourage imports of finished products, promote domestic manufacturing, and create a stronger base for exports.</span></p> <p><span style="font-size:14px"><strong>SEZ Reforms to Boost Competitiveness</strong><br /> Deloitte also proposed reforms to the Special Economic Zone (SEZ) framework to boost competitiveness and curb litigation, including allowing domestic supplies on a duty-forgone basis, relaxing sub-contracting norms, exempting value addition from customs duties, and introducing a limited customs amnesty scheme.</span></p> <p><span style="font-size:14px">The firm suggested extending the successful Phased Manufacturing Programme (PMP) to other priority sectors, along with higher budget support for R&amp;D and technology upgrades, to help India move up the value chain and boost exports of finished products.</span></p> <p><span style="font-size:14px"><strong>Strengthening Export Promotion Schemes</strong><br /> Deloitte India further called for higher allocations to, and an extension of, the Market Access Initiative (MAI) scheme. According to the firm, enhanced support under the MAI would strengthen export promotion bodies and help Indian exporters expand their global footprint.</span></p> <p><span style="font-size:14px">Official data show that Indias merchandise exports rose 2.62 per cent to USD 292.07 billion during April November 2025 26, while imports increased 5.59 per cent to USD 515.21 billion. This resulted in a trade deficit of USD 223.14 billion during the period.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 44766 https://knnindia.co.in/news/newsdetails/sectors/budget-2026-deloitte-suggests-custom-duty-rationalisation-to-strengthen-exports 2026-01-14 13:47:01 knnindia.co.in