India Plans Major Customs Overhaul in FY27 Budget to Boost Trade

• India is preparing customs duty reforms for the FY27 Union Budget to accelerate cargo movement and rationalize tariffs.
• The reforms aim to simplify cross-border trade, reduce costs, and support export diversification for Indian businesses.
• Current average port turnaround time is 48 hours; reforms seek to narrow this gap with global hubs like Hong Kong.
• Proposed changes include simplifying procedures, improving last-mile connectivity, expanding automation, and reducing the number of core customs tariff rates from eight.
• The government will review duty rates to keep raw material costs low while protecting domestic manufacturers, aligning with industrial priorities and trade diversification.

Why It Matters: FY27 Budget to bring significant customs reforms for faster trade, lower costs, and enhanced global competitiveness.