The Aryavarth Express
New Delhi: Congress MP Manish Tewari on Monday raised questions over the Union Budget 2026–27, suggesting that recent customs duty reductions could amount to concessions to the United States without any formal trade agreement.
In a post on social media platform X, Tewari criticised the Finance Bill 2026, arguing that a series of customs duty cuts and exemptions lack a clear policy narrative.
“What is peculiar, if not quixotic, in the Finance Bill 2026 is the myriad number of customs duty reductions and exemptions done through notifications, rate alignments, and chapter-specific tariff rationalisation, without an explicit policy narrative in the Budget speech. Does this align with US interests? Yes,” he wrote.
Tewari pointed out that the sectors benefiting from the duty reductions closely match areas where the United States has repeatedly sought greater market access from India. These include electronics and components, semiconductors and capital goods, medical devices, select chemicals and intermediates, civil aviation parts, and clean energy inputs.
“The sectors benefiting strangely and coincidentally overlap neatly with repeated US asks from India. Were these not the friction points raised repeatedly by the US Trade Representative (USTR)? Does this smell like a concession without agreement?” the Congress leader said in his post.
The remarks came a day after Union Finance Minister Nirmala Sitharaman presented the Union Budget 2026–27 in the Lok Sabha, her ninth consecutive budget presentation.
As part of the budget proposals, the government reduced the tax collected at source (TCS) on overseas tour packages to 2 per cent, down from the earlier range of 5–20 per cent, without any minimum threshold. To promote clean energy and self-reliance, customs duty has been exempted on sodium antimonate, a key input used in solar glass manufacturing.
The budget also extends customs duty exemptions for nuclear power projects until 2035, irrespective of plant size, underscoring the government’s long-term energy security strategy. In the civil aviation sector, basic customs duty exemptions have been provided on components and parts, including engines, used in the manufacture of civilian aircraft.
Additionally, specified parts used in the manufacture of microwave ovens have been exempted from customs duty to encourage value addition in consumer electronics. International travellers are also set to benefit from a simplified baggage regime, with customs duty on all dutiable goods imported for personal use reduced from 20 per cent to 10 per cent.
“To rationalise the customs duty structure for goods imported for personal use, I propose to reduce the tariff rate on all dutiable goods imported for personal use from 20 per cent to 10 per cent,” the Finance Minister said in her budget speech.
