The government has initiated a review of basic customs duty concessions and exemptions applicable to 118 products as part of preparations for the Union Budget 2027-28. The review includes important sectors such as power, electronics, textiles, renewable energy, pharmaceuticals and electric mobility.

Among the products under consideration are textile machinery, power project equipment, panel display module components, battery scrap, photovoltaic cells, drugs and optical fibre cables. The review covers customs duty concessions scheduled to expire on March 31 and September 30, 2027.

The government has asked relevant industry stakeholders to provide detailed inputs on whether existing exemptions and concessional duty rates should be continued, withdrawn or allowed to expire. Companies have been asked to submit supporting data on domestic production, imports, manufacturing capacity and planned investments.

The review covers 32 products with conditional customs duty concessions and 86 products receiving unconditional exemptions. According to officials, the exercise aims to rationalise tariffs, address inverted duty structures and encourage domestic manufacturing.

For the textile industry, changes in customs duty concessions on textile machinery could influence import costs, investment decisions and the competitiveness of domestic manufacturers.