The Ace of Tariffs

TO EXPAND STRATEGIC PARTNERSHIP, BUDGET ANNOUNCEMENTS SHOULD BE CRYSTALLISED WITH ACTION

- Mukesh Butani Pranoy Goswami

At a time when the gross domestic product growth is slowing, and domestic consumption and private investments are not displaying spirited animal trends, exports are quintessential for swerving the growth momentum. New markets need to be accessed by Indian manufacturing exports. In this regard, augmenting their competitiveness by lowering costs of production is essential, especially in a scenario of unilateral and reciprocal tariffs.

With these central themes, Finance Minister Nirmala Sitharaman completed the Budget exercise on February 1, with the aim to incentivize sector-wise growth, bolster investments across major components in the economy, and ensure all-inclusive development. For FY26, the FM has proposed a total expenditure of over ₹11.21 lakh crore to support infrastructure and job creation. As a foundation for long-term transformations, the Budget proposes several key amendments to both the direct and indirect tax regimes. In its quest to do so, it underscores the need to effectuate business and promote voluntary compliance. However, what caught the attention of trade experts and policymakers across the globe was India's bold attempt to galvanize one of its most contentious pillars of taxation, the cauldron of customs.