India mulls higher duties and non-tariff barriers in the 2026 budget to curb non-essential imports and narrow the trade gap.
The Indian government is weighing a series of fiscal measures, including increased customs duties and stringent non-tariff obstacles, to be introduced in the upcoming Union Budget. This strategy aims to decrease the country’s reliance on foreign goods and address a persistent trade imbalance, particularly with China.
According to officials familiar with the discussions on 29 December 2025, a list of over 300 products is currently under review. These items span sectors such as electronics, chemicals, and consumer hardware, where local manufacturing capabilities already exist but are being undercut by cheaper imports.
A core component of the plan involves enforcing stricter quality control orders and technical regulations. These standards are designed to ensure that only high-calibre goods enter the domestic market, effectively serving as a deterrent against low-quality mass imports. This approach is intended to support the existing production incentive schemes by making domestic manufacturing more competitive compared to imported alternatives.
Consultations between the commerce ministry and industry representatives are ongoing to ensure that any duty adjustments do not inadvertently penalise manufacturers who require specific imported raw materials. The comprehensive policy package is expected to be unveiled during the budget presentation on 1 February 2026.
SOURCE – TIMES OF INDIA
