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Sitharaman Flags Customs Overhaul as Next ‘Big Cleanup’ Before Budget 2026

The finance minister signalled a faceless, automated regime focused on transparency with risk-based enforcement to tackle smuggling.

Overview

  • Speaking at the Hindustan Times Leadership Summit, Nirmala Sitharaman identified customs reform as her next major assignment ahead of the Budget.
  • She said the system will become fully faceless with automated decision-making to remove officer discretion and reduce harassment of legitimate trade.
  • She flagged stronger risk-based checks to curb illicit contraband while seeking to avoid new friction for compliant importers and exporters.
  • She noted customs duties have been trimmed over the past two years and said some high slabs will have to come down as part of a rationalised structure.
  • She framed the revamp as a well-signalled structural reform rather than a Budget-day surprise, adding that groundwork is already underway and detailed measures are yet to be unveiled.