Finance Minister Nirmala Sitharaman said on Monday that the customs duty changes announced in the Budget for 2026-27 are part of the Indian government's ongoing economic reforms to rationalise tariffs and are not linked in any way to the policy decisions of the US.
"We have changed customs duties, and we have been making customs duty changes in every Budget for a while now, and we have continued the same in this Budget as well," she pointed out.The Finance Minister maintained that these measures are part of a broader policy framework aimed at supporting Indian citizens and businesses.
She further stated that the government did not go in for any assessment of the potential impact of the US tariff hikes while drawing up the proposals for the Budget.“We did not make any assessment of the impact of US tariffs to factor them into Budget decisions,” she remarked.Customs duty on goods imported for personal use halved from 20 per cent to 10 per cent
The Finance Minister announced in her Budget speech that the proposals for Customs and Central Excise aim to further simplify the tariff structure, support domestic manufacturing, promote export competitiveness, and correct inversion in duty.
The new Budget proposes to reduce the tariff rate on all dutiable goods imported for personal use from 20 per cent to 10 per cent to rationalise the customs duty structure. To provide relief to patients, particularly those suffering from cancer, it proposes to exempt basic customs duty on 17 drugs or medicines.
The Budget also proposes to add 7 more rare diseases for the purposes of exempting import duties on personal imports of drugs, medicines and Food for Special Medical Purposes (FSMP) used in their treatment.The Union Budget further proposes to revise provisions governing baggage clearance during international travel to address the genuine concerns of passengers.
The revised rules will enhance duty-free allowances and provide clarity in the temporary carriage of goods brought in or taken out. Furthermore, the honest taxpayers will now be able to settle their dues and close cases by paying an additional amount in lieu of penalty, the Finance Minister said.
The Budget also proposes many measures for customs processes to have minimal intervention for smoother and faster movement of goods and greater certainty for the trade.