Customs reform: Boost India's competitiveness

That our customs duty regime is slated for a rejig is good news. In a world of trade flux, its guiding principle needs to be defined clearly: let's focus on stepping up our ability to compete

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We welcome finance minister Nirmala Sitharaman's announcement at this year's HT Leadership Summit that her next reform would be of India's customs duty regime.

This is vital to boost competitiveness and trade diversification amid today's tariff turmoil, with the US walling itself apart. It would be best not to limit the exercise to easing procedures and revising customs duty rates. The reform agenda must cover the entire gamut of non-tariff barriers from quality and technical standards to inspection delays, registration riddles and more. India is a vast market. If Indian companies can compete with the world's best at home for a slice of the consumer spending pie, they would be able to rival foreign businesses in global markets. If the guiding principle of a customs rejig is clearly identified as making the economy more competitive, rather than shielding local industries that vie to be labelled critical or 'infant' in their pleas for tariff protection, it would help policymakers steer clear of special interest lobbies.