Archive · 17 Jan 2026
India Needs Tariff and Customs Overhaul
A group called GTRI says India needs to change its rules for importing goods and handling customs.
They think this will make it cheaper to trade, help factories make things more competitively, and increase the number of goods India sells to other countries.
Right now, India's rules are complicated and make trading more expensive.
GTRI suggests making the rules simpler and fairer, like charging no tax on raw materials and a small tax on finished products.
They also want customs officers to help with checks and teach people about the best ways to trade globally.
This will help India's economy grow and make trading easier for everyone.
GTRI proposes a sweeping overhaul of India's import tariff structure and customs administration to cut trade costs and boost manufacturing competitiveness.
The think tank recommends moving toward zero duty on most industrial raw materials and a low standard duty of around 5% on finished industrial goods over the next three years.
GTRI calls for eliminating inverted duty structures where inputs are taxed more heavily than finished products, which erodes domestic manufacturing competitiveness.
The report suggests rationalizing extreme tariffs, such as the 150% duty on alcohol, to prevent evasion and improve fiscal gain.
GTRI urges the government to issue self-contained customs notifications and publish all applicable import duties in a single, unified online schedule for greater transparency.
- Who
- Global Trade Research Initiative (GTRI)
- What
- Proposed overhaul of India's import tariff structure and customs administration
- When
- January 17, 2026
- Where
- India
- Why
- To cut trade costs, strengthen manufacturing competitiveness, and revive export growth
- Organization
- Global Trade Research Initiative (GTRI)
- Report Title
- A Blueprint for Modernizing India's Import Tariffs and Customs Regime
- Current Trade Volume
- USD 1.16 trillion
- Percentage of GDP through Customs
- 29%
- Current Customs Duty Revenue
- 6% of gross tax revenue
- Average Customs Duty on Imports
- 3.9%
- Proposed Duty on Raw Materials
- Zero duty
- Proposed Duty on Finished Goods
- Around 5%
Sources
Stakeholders seek further simplification of GST ahead of Union Budget 2026
GJC Seeks GST Cut, Tax Relief For Gems And Jewellery Sector In Pre-Budget 2026–27 Pitch
Gems, jewellery exports to US plunge 44% in Apr-Dec on tariff woes
GTRI calls for overhaul of tariff structure, customs to boost India's trade
Overhaul of import tariff structure, customs processes to cut trade costs, boost mfg, exports: GTRI
India needs sweeping import and customs reforms to cut trade costs and boost exports: GTRI
India-EU free trade pact seen boosting exports across sectors
Gems and jewellery exports down 4.98% in December as sector adapts to new markets
