Budget 2026-27: Exporters Seek Duty Rationalisation, Carbon Compliance Relief

• Indian exporters, particularly from tariff-hit sectors, are seeking duty rationalisation, lower input costs, and simpler trade procedures in the upcoming Budget 2026-27 to remain competitive globally.
• Sectors like electronics, automobiles, textiles, gems and jewellery, and engineering goods face increased tariffs from major trading partners like the US, impacting price competitiveness and margins.
• MSMEs, which form the majority of engineering exporters, require explicit inclusion in interest subvention schemes and enhanced incentives for clean energy adoption, such as 100% depreciation for rooftop solar installations.
• The textile industry seeks removal of import duties on cotton, a revised MSP formula, a Green Technology Scheme for MSMEs, and measures to address high power costs to achieve a $350 billion industry by 2030.
• The gems and jewellery sector, facing a significant decline in exports to the US due to tariffs, calls for rationalisation of import duties on diamonds and gemstones, improved duty drawback, and practical SEZ reforms.

Why It Matters: Indian exporters urge Budget 2026-27 for duty cuts, lower input costs, and clean energy support to boost global competitiveness.