With the Union Budget around the corner, Indian industry is stepping up demands for a GST-style reform of the customs duty regime, seeking simpler structures, faster clearances, and stronger dispute-resolution mechanisms to improve the ease of doing business.
Corporate leaders say the existing customs duty framework, which currently operates across eight slabs, is complex and leads to higher compliance costs. Industry bodies are urging the government to rationalise rates and reduce the number of slabs to four or five, bringing greater transparency and predictability to the system.
Among the key proposals is the creation of a single-window clearance mechanism for exports and imports, which industry representatives believe would majorly streamline trade processes and cut transaction times.
The industry is also calling for fixed timelines for issuing Authorised Economic Operator (AEO) certifications and the introduction of a clear charter for the Directorate of Revenue Intelligence (DRI) to ensure investigations are conducted in a time-bound and non-intrusive manner.
Another major concern is the large volume of customs duty locked in litigation. Nearly ₹1.52 lakh crore remains tied up in disputes, according to industry estimates, prompting calls for full digitisation of the litigation process and a one-time dispute-resolution scheme to settle legacy cases.
Experts argue that rationalising customs duties, particularly on raw materials, would improve the competitiveness of domestic manufacturers and lend fresh momentum to the government’s ‘Make in India’ programme. Simplifying the duty structure would also ease compliance pressures and help businesses deploy capital more efficiently.
These demands come amid heightened global uncertainty, driven by geopolitical tensions and unpredictability over tariff actions by the United States. Industry leaders believe that a simplified customs regime and robust dispute-resolution framework in the budget would provide critical support and help Indian companies remain competitive on the global stage.