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Sitharaman Sets Customs Overhaul as Next Major Reform Ahead of Budget 2026

She outlined a shift to faceless, tech-driven procedures with targeted duty cuts plus risk-based checks to ease trade, curb smuggling.

Overview

  • Speaking at the Hindustan Times Leadership Summit, the finance minister described customs as her next “big cleaning-up assignment” and said groundwork is already underway.
  • The reform drive targets full transparency and a faceless operating model, using automation and comprehensive scanning to cut discretion and reduce direct cargo–officer contact.
  • A review of tariff lines where rates remain above optimal levels is planned, following steady customs duty reductions over the past two years.
  • Officials aim to pair trade facilitation with stronger risk-based enforcement, citing illicit contraband as a continuing problem that requires sharper targeting.
  • India’s approach will align with World Customs Organization benchmarks, with formal proposals expected in the Budget cycle though no specific legislative changes have been announced yet.