What to expect from India's customs reforms

Businesses have flagged the need for a simpler customs duty regime.

- BY GIREESH CHANDRA PRASAD

The US tariffs have amplified the need for a review. The finance minister has called it the next "clean-up" after the income tax and goods and services tax reforms. Mint explains what to expect:

1 Why are customs reforms important?

Global supply-chain disruptions and the US tariff shock have hurt India's exporters. Most exporters are also importers of raw materials, capital goods and intermediate goods. Easing the duty structure will ease costs for them. Moreover, delays at ports add to the cost of doing business. Streamlining the customs regime is critical as India aspires for a higher share of the global trade. Finance minister Nirmala Sitharaman restructured the tariff lines in the February 2025 budget. The latest reform aims to enhance India's manufacturing competitiveness and transparency in customs administration.

2 What are the problematic areas?