India budget 2026: Single window customs clearance, export–import easing, cargo reforms to address supply chain issues amid global uncertainties

Presenting India’s Union Budget 2026–27 in Parliament on Sunday (Feb 1), Finance Minister Nirmala Sitharaman made proposals on ease of doing business and tax cuts that are clearly aimed at reducing the burden on cargo handlers and those involved in export–import processes. These proposals come amid global uncertainties affecting supply chain management.

Single window clearance for cargo

As per the budget proposals, a single-window system will be introduced to handle approvals required for cargo clearance from various government agencies. This interconnected digital window for seamless processing of requests will be established by the end of the financial year.

But before that, by April this year, clearance of food, drugs, plant, animal and wildlife products will be operationalised on this system. These sectors account for around 70 per cent of interdicted cargo.

The new Customs Integrated System (CIS) will be rolled out over the next two years as a single, integrated and scalable platform for all customs processes.

Customs duty exemptions amid tariff war

The budget proposed a basic customs duty exemption on components and parts required for the manufacture of civilian, training and other aircraft.

It also proposed concessional duty rates to facilitate sales by eligible manufacturing units in Special Economic Zones (SEZs) to the Domestic Tariff Area (DTA).

The limit will be increased for duty-free imports of some inputs used for processing seafood products for export. The duty will be reduced to 1–3 per cent of the FOB (free on board) value of the previous year’s export turnover.

Duty-free imports of specified inputs for the export of shoe uppers is another proposal.

Ease of doing business

As part of ease-of-doing-business measures, the current value cap of ₹1 million per consignment on courier exports will be removed completely.

Fish catch by an Indian fishing vessel in the Exclusive Economic Zone (EEZ) or on the high seas will be made duty-free too.

Energy sector to see customs duty and central excise duty easing

Customs duty exemption will be granted for capital goods used in the manufacture of lithium-ion cells for batteries and battery energy storage systems. Capital goods required for the processing of critical minerals in India will also receive duty relief. There will also be duty exemptions on imports of goods required for nuclear power projects until 2035.