Custom Reforms: Indian Finance Minister Nirmala Sitharaman announced a bold new phase of economic & custom reforms aimed at overhauling the country’s customs duty regime, signalling a significant shift in trade policy.
Speaking at the Hindustan Times Leadership Summit, Sitharaman said the new custom reforms will positively impact businesses, consumers, and the overall economic landscape. Sitharaman detailed plans to reduce custom duty rates on selected goods while lowering official discretion and increasing transparency to transform the country’s tax and regulatory environment.
What’s in Store?
Indian Finance Minister Nirmala Sitharaman said the new custom reforms would mark a strategic effort to modernize the trade system of India, which has often been criticized as opaque and cumbersome. Sitharaman added this initiative will help build upon a series of recent reforms to simplify compliance burdens and foster a more business-centric landscape.
The new custom reforms come on the heels of monumental changes, including the landmark Income Tax Act of 2025 and the Goods and Services Act amendments – both of which were widely applauded for easing the tax burden on manufacturers, traders and consumers alike.
What Critics Said?
Critics said lowering custom duties under the proposed custom reforms might expose domestic industries to increased competition from imports, which may end up harming sectors that are still uncompetitive to some extent on a global scale. There is also a concern about the impact of the proposed custom reforms on employment in industries vulnerable to foreign goods. Furthermore, critics also expressed fears that lowered custom duties can lead to revenue losses for the government during a period requiring financial prudence.
Whether these ambitious plans materialize as envisioned remains to be seen, but the direction is clear: India aims to revamp its customs policies as a key pillar for driving growth and integration into the global economy in the coming decade.
