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Informist, Monday, Apr. 27, 2026

 

NEW DELHI – The Budget estimate of INR 2.71 trillion from customs duty collections in 2026-27 (Apr-Mar) takes into account all tariff cuts offered by India under the recently concluded trade deals, a government official said Monday. The remark comes on the same day as India signed a free trade agreement with New Zealand, taking the total number of new trade agreements likely to take effect in the current financial year to three.

 

The government has assumed a very modest growth in the customs duty collections for FY27, the official told Informist. The government expects customs duty collections to grow 5% in FY27 from the revised estimate of INR 2.58 trillion for the last financial year.

 

"The advantages of these FTAs easily outweigh the revenue loss," the official said. These trade deals can help diversify markets and boost India's exports, which can add significantly to the country's GDP, the official added. 

 

India's free trade agreement with the UK is next in line for implementation, likely in May, followed by the trade deal with Oman. India had signed deals with both nations last financial year. New Delhi also concluded negotiations for a free trade agreement with the European Union in FY26, which is likely to be signed in the current year.

 

India is also likely to sign a trade deal with the US very soon. Both sides concluded the negotiations in February, after which Washington scrapped the 25% penalty tariff on Indian goods and had committed to cutting the reciprocal tariff on Indian imports to 18% from 25%. However, the US tariff has come down 

to a blanket 10% on all trading partners after the US Supreme Court scrapped the reciprocal tariffs.

 

India and the US have started engaging to revise the terms of the India-US trade agreement. A delegation of Indian officials visited Washington just last week to discuss the trade pact.  End

 

Reported by Krity Ambey

Edited by Saji George Titus

 

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