Union Budget 2026: India to Curb China Imports, Boost Domestic Production

• Union Budget 2026 to focus on reducing imports from China by increasing customs duty and offering incentives to domestic companies.
• Government aims to curb India's significant trade deficit with China, which saw $515.2 billion in imports vs $29.2 billion in exports (April-Nov).
• A list of approximately 100 high-import items, including engineering goods, steel products, machinery, and consumer items, has been prepared for intervention.
• Measures will target products with high import dependence, aiming to boost local manufacturing capacity and reduce reliance on specific countries.
• Finance Minister Nirmala Sitharaman may present the budget on February 1, 2026, with formal announcements expected in early January.

Why It Matters: India plans to use Budget 2026 to reduce China imports and strengthen local industries.