Union Budget 2025: India Expands Trade Facilitation Measures Across Key Export Sectors

2025-02-01 02:07:34

(MENAFN- KNN India) New Delhi, Feb 1 (KNN) Finance Minister Nirmala Sitharaman announced significant trade policy reforms during her Union Budget 2025 presentation, introducing measures to increase exports across handicrafts, leather, marine products, and railway maintenance sectors.

The comprehensive package aims to enhance India's global competitiveness and strengthen domestic value addition capabilities.

In a notable development for the handicraft industry, the government has extended the export time period from six months to one year, with an additional three-month extension available if necessary.

The sector will also benefit from duty exemptions on nine newly added input materials, though specific details of these items were not disclosed in the speech.

For the leather industry, the Finance Minister declared a complete exemption of Basic Customs Duty (BCD) on Wet Blue leather imports, a move designed to support domestic processing and employment generation.

Additionally, the government has removed the 20 percent export duty on crust leather, a decision that particularly benefits small-scale tanners looking to access international markets.

The marine products sector received targeted support through reduced import duties. The BCD on Frozen Fish Paste (Surimi) has been significantly lowered from 30 percent to 5 percent to enhance the manufacture and export of analog products.

Similarly, the duty on fish hydrolysate, a key ingredient in fish and shrimp feed production, has been reduced from 15 percent to 5 percent.

Building upon reforms introduced in July 2024, Sitharaman extended the timeframe for re-export of foreign-origin railway goods imported for repairs.

This aligns with similar provisions already in place for aircraft and ship maintenance, repair, and overhaul (MRO) operations, allowing up to one year for re-export with the possibility of a one-year extension.

(KNN Bureau)

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