Finance Minister Nirmala Sitharaman proposed several measures in the Union Budget 2026 to rationalize customs duties and provide relief to patients, manufacturers, and defense units.
To simplify import taxation for individuals, the Finance Minister proposed to reduce the tariff rate on all dutiable goods imported for personal use from 20% to 10%, aiming to make essential and personal imports more affordable.
For patients, particularly those battling cancer, Nirmala Sitharaman announced the exemption of basic customs duty on 17 drugs and medicines. Additionally, the government plans to add seven more rare diseases to the list for exemption on imports of drugs, medicines, and Food for Special Medical Purposes (FSMP) used in treatment, further easing the financial burden on patients.
On the industrial front, the Finance Minister proposed exempting basic customs duty on components and parts required for the manufacture of civilian, training, and other aircraft, as well as raw materials imported for making aircraft parts used in maintenance, repair, or overhaul by defense units. These measures are aimed at supporting the domestic aerospace and defense manufacturing ecosystem, encouraging local production and reducing dependency on imports.