New Delhi: Rationalising the import duty structure and increasing allocations in the forthcoming Budget would help boost domestic manufacturing and the country’s exports, Deloitte India suggested on Tuesday.
It also said reforms to the Special Economic Zone (SEZ) regime such as allowing domestic supply on a duty-forgone basis, easing sub-contracting norms and exempting value addition from customs duty along with a limited customs amnesty scheme would improve competitiveness and reducing litigation.
The Budget for 2026-27 is expected to be presented on February 1.
The consulting firm said that to give a sustained boost to India’s exports, the Union Budget should build on the government’s ongoing efforts to strengthen domestic manufacturing and enhance export competitiveness.
“A key measure would be to further rationalize 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,” Gulzar Didwania, Partner at Deloitte India said.
This approach, he said, would discourage imports of finished products, promote domestic value addition, and create a stronger foundation for exports.
He also suggested broadening the scope of the Phased Manufacturing Program (PMP), which has delivered positive results in sectors such as mobile phones and electronics, to other priority manufacturing areas.
Extending the PMP framework, coupled with higher budgetary support for R&D and technology upgradation, would enable India move up the value chain and export fully finished products, Didwania said.
He added that enhanced budgetary allocation and extension of the Market Access Initiative (MAI) scheme would strengthen export promotion bodies and help Indian exporters expand their footprint in global markets.
India’s merchandise exports during April-November 2025-26 rose by 2.62 per cent to USD 292.07 billion, while imports increased by 5.59 per cent to USD 515.21 billion. The deficit stood at USD 223.14 billion.
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