The Union Budget for FY28 is expected to focus on simplifying cross-border trade procedures, improving customs administration and reducing transaction costs for exporters and importers rather than introducing widespread customs duty reductions.

The government may consider selective customs duty adjustments to address inverted duty structures, where taxes on raw materials and inputs are higher than those on finished products. The growing number of Free Trade Agreements (FTAs) has reduced the need for broad-based tariff cuts while creating new challenges in duty rationalisation.

The proposed reforms could include operationalising Bharat Trade Net, a unified digital platform for trade documentation, and expanding Customs Project 2.0 and the Single Window Interface for Facilitating Trade (SWIFT) to accelerate customs clearances and reduce multiple approvals.

Further improvements to the Authorised Economic Operator (AEO) programme are also expected, potentially providing compliant businesses with faster clearances and greater trade facilitation benefits. These measures aim to make India's international trade processes faster, more transparent and predictable.