Finance Minister Nirmala Sitharaman announced on Sunday an exemption in the basic customs duty on specified parts used in the manufacture of microwave ovens.
The move aims to lower the cost of production for domestic manufacturers and deepen the local value chain beyond mere assembly.
“To deepen value addition in the consumer electronics sector, I propose to exempt basic customs duty on specified parts used in the manufacture of microwave ovens,” she said in the Lok Sabha while presenting the Budget for financial year 2026-27.
Sitharaman also proposed duty-free imports of certain specified inputs for promoting the country’s exports of leather. The move will help provide cushion to leather exporters who are reeling under the steep 50 per cent US tariffs.
The government also proposed to increase the limit for duty-free imports of specified inputs for processing seafood for export to 3% from 1% of the FOB value. It will also extend the basic customs duty exemption for capital goods used to manufacture the Battery Energy Storage System.
Sitharaman also announced that the government would exempt customs duty on sodium antimonate for use in the manufacture of solar glass. The government will also exempt customs duty on imports of goods for nuclear power projects till 2035.
The finance minister also proposed to exempt customs duty on raw materials for manufacture of parts for aviation.
Sitharaman presented her ninth consecutive Union Budget in the Lok Sabha. The country’s most important financial document comes at a time when the world’s fastest-growing major economy has managed to withstand prohibitive US tariffs but uncertainty continues to swirl.
India’s GDP is expected to grow 7.4% for the year ending March 31 with the help of government spending on infrastructure, and income and consumption tax cuts that boosted consumer spending.
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