Customs Target
FY27 Budget estimate on customs assumes US deal, other FTAs - CBIC Chairman
This story was originally published at 19:27 IST on 3 February 2026
Register to read our real-time news.Informist, Tuesday, Feb. 3, 2026
By Priyasmita Dutta and Sagar Sen
NEW DELHI – The Budget estimate on customs duty collections in 2026-27 (Apr-Mar) has built in the impact of trade agreements with the US and other countries, Central Board of Indirect Taxes and Customs Vivek Chaturvedi said Tuesday. "We have done a very conservative and moderate analysis of how much customs duty growth will be in FY27," the chairman told Informist.
The upcoming trade deals are the most important reason for the assumptions, as they would mean lower tariffs under a preferential tariff structure, which leads to lower revenues, Chaturvedi said. "FTAs are a reality of life and they will of course have an impact on our revenues," he said.
The Budget, presented on Sunday, projected customs duty collections to grow 5% to INR 2.71 trillion in FY27. This is a very "modest" estimate, Chaturvedi said.
US President Donald Trump announced late on Monday that New Delhi and Washington had agreed to a bilateral trade agreement under which tariffs on Indian goods will be lowered to 18% from 25%. Trump also said India had agreed to stop purchasing energy from Russia, the reason for the additional 25% punitive tariff on India.
Trump also said India has committed to cutting tariff and non-tariff barriers for US goods to zero. Under the deal, India will also have to open its markets to the US, which will adversely affect customs revenues. India exported goods worth $86.51 billion to the US in FY25, while importing goods worth $45.69 billion from the US.
India has also signed a free trade agreement with the European Union. Under the deal, both sides have offered to cut tariffs on over 95% of export value. This could also complicate the customs collection, given the volume of trade, Chaturvedi said.
In the current fiscal till December, customs duty collections have grown 15% on year to INR 1.96 trillion. For the full year, the government hopes to collect INR 2.58 trillion, up 10.8% from a year ago. End
US$1 = INR 90.27
Edited by Saji George Titus
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