Basic customs duty in strategic inputs and capital goods in sectors such as nuclear energy, aircraft, clean-energy (lithium-ion cells), electronics (microwave ovens), healthcare ( 17 drugs and medicines) have been removed or exempted
Experts pointed out that this will also result in lowering of barriers for certain capital-intensive and technology-led exports from the US to India.
Basic customs duty in strategic inputs and capital goods in sectors such as nuclear energy, aircraft, clean-energy (lithium-ion cells), electronics (microwave ovens), healthcare ( 17 drugs and medicines) have been removed or exempted. At the same time, basic customs duties on items such as potassium hydroxide used in soaps, detergents and batteries and umbrella and umbrella parts have been raised or revised, among other measures.
Finance Minister Nirmala Sitharaman said the proposals for customs duties and Central Excise are aimed at further simplifying tariff structure, supporting domestic manufacturing, promoting export competitiveness and correcting inversion in duties. She said certain exemptions on items which are being manufactured in India or where the imports are negligible are also being removed.
Manoj Mishra, Partner and Tax Controversy Management Leader, Grant Thornton Bharat said targeted relief for sectors such as energy transition, critical minerals, aviation, electronics, and nuclear power, along with export facilitation for marine, leather, and textiles, reinforces domestic manufacturing and export readiness. “Rationalisation of exemptions and the integration of effective rates into the tariff structure are likely to reduce interpretational disputes and provide much-needed certainty to businesses, supporting productivity and global competitiveness,” he added.
Ajay Srivastava, Founder, Global Trade Research Initiative pointed out that these proposals, though country neutral, improve market access prospects for US exporters across several high-value sectors including aircraft components and MRO inputs, nuclear-generation, clean energy, critical minerals, electronics, and health care.
Various measures have also been announced for enhancing trust-based systems and promoting ease of doing business, which include proposal to roll-out Customs Integrated System (CIS) in 2 years as a single, integrated and scalable platform for all the customs processes
Bipin Sapra, Partner and National Indirect Tax Policy Leader, EY India said, “Crucially, customs is transitioning to a trust-based, fully digital framework along with AI-enabled scanning, faster clearances and predictable rulings marking a significant step forward in ease of doing business. It also gives a boost to cross-border e-commerce exports by removing procedural and value-related constraints, enabling wider global market access for Indian MSMEs and start-ups.”
(With inputs from Amiti Sen)
Published on February 1, 2026
