Archive · 1 Dec 2025
India Urged to Cut Customs Duties
India is being advised to cut customs duties in the upcoming budget.
This would show that India supports free trade and is not trying to protect its own industries too much.
The government can do this because most of its customs money comes from just a few types of goods.
Lower duties on raw materials would help make things in India and create jobs.
The US has been increasing tariffs, but India should not do the same.
Instead, it should make it easier for goods to come in and go out.
This would help India's economy grow and adapt to changes in global trade.
India is urged to cut customs duties in the upcoming Union Budget to promote free trade.
Most customs revenue comes from a small number of tariff lines, allowing for broad duty cuts.
Lower duties on industrial raw materials would boost value addition and job creation.
India's effective tariff rate is lower than its simple-average import tariff.
The US has increased tariffs, but India should focus on economic openness.
- Who
- Indian government, Donald Trump administration
- What
- Proposal to cut customs duties in India
- When
- Upcoming Union Budget
- Where
- India, global context
- Why
- To promote free trade, economic openness, and job creation
- Customs Revenue
- 4% of Union Budget
- Tariff Lines
- 90% of revenue from 4% of tariff lines
- Free Trade Agreements
- 50 under negotiation
- Effective Tariff Rate
- 3.8% of import value
- US Tariff Revenue
- 5% of federal revenues