Trade & Export Update: India Extends Duty-Free Imports to Boost Leather, Textile, Defense & Energy

The Indian government has announced sector-specific duty exemptions and incentives to enhance exports, promote domestic manufacturing, and support strategic industries. For the leather and textile sectors, select inputs for leather and synthetic footwear production will now enjoy duty-free imports, with the previous 6-month exemption extended to 1 year. Basic customs duty on key inputs has been reduced from 3% to 1% to make Indian exports more competitive globally. In the energy sector, duty exemptions are being provided for lithium-ion cells, storage systems, and sodium antimonate solar glass to promote renewable energy adoption. Nuclear energy projects will also benefit from extended exemptions on essential imports until 2035. Similarly, capital goods for critical minerals will receive customs duty relief to boost domestic industrial capacity. The aviation and defense sectors will enjoy duty exemptions on imported raw materials used in aircraft manufacturing, maintenance, and defense equipment production, ensuring strategic self-reliance. For electronics, select items, including microwave ovens, will benefit from basic customs duty exemptions, supporting the rapidly growing domestic electronics manufacturing ecosystem.

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