India Slashes Import Duties: FM Signals Continued Trade Liberalization

Finance Minister Nirmala Sitharaman has announced further reductions in import duties, signaling India's commitment to trade liberalization. The Union Budget 2025-26 proposes eliminating seven additional customs tariff rates for industrial goods, reducing the total number of tariff slabs to eight. Notable cuts include reducing duties on mobile phone components, TV panel inputs, and certain capital goods to zero. The government has also lowered import duty on bourbon whiskey to 50%, down from 150%. These measures aim to boost domestic manufacturing, enhance export competitiveness, and strengthen India's position in global value chains. The FM emphasized that these reforms will rationalize the tariff structure, address duty inversion, and facilitate trade.

 

Sources: India Briefing, Economic Times, Business Standard, The New Indian Express