GTRI calls for overhaul of tariff structure, customs to boost trade

India needs a sweeping overhaul of its import tariff structure and customs administration to cut trade costs, strengthen manufacturing competitiveness and revive export growth, suggests trade-focused think-tank Global Trade Research Initiative (GTRI).

- CORRESPONDENT

The report, titled; A Blueprint for Modernizing India's Import Tariffs and Customs Regime', outlined the need for reforms, spanning tariff policy, customs procedures, export incentives and manpower deployment.

Taken together, the measures would transform customs from a control-oriented system into what the authors described as a growth-enabling institution aligned with India's broader manufacturing and supply chain ambitions.

The study comes as India's merchandise trade crosses USD 1.16 trillion and nearly 29 per cent of gross domestic product flows through customs clearances.

In that context, even modest inefficiencies now impose economy-wide costs, raising input prices, delaying shipments and weakening export competitiveness at a time when global companies are reassessing sourcing locations amid geopolitical fragmentation.