New Delhi, Feb 1 (NationPress) Finance Minister Nirmala Sitharaman unveiled an assortment of customs duty reductions targeting various sectors including marine products, textiles, leather, as well as defence and aviation. These measures are aimed at enhancing manufacturing capabilities and boosting exports as part of the Union Budget for 2026-27 introduced in the Lok Sabha on Sunday.

To specifically aid the marine products sector, the Finance Minister suggested increasing the threshold for duty-free importation of certain inputs utilized in seafood processing for export from 1 percent to 3 percent of the FOB (free-on-board) value based on the previous year's export turnover.

Furthermore, she proposed extending the current duty-free import privileges for specified inputs, which are presently available for leather or synthetic footwear exports, to include exports of shoe uppers. This initiative is designed to uplift exports in these labor-intensive sectors, thereby enhancing jobs and income levels.

The timeline for exporting final products has been extended from six months to one year for exporters involved in leather or textile garments, leather or synthetic footwear, and other leather items, according to Sitharaman.

Additionally, the Finance Minister declared the extension of the basic customs duty exemption on capital goods employed in the manufacturing of lithium-ion cells for batteries to also cover those utilized in battery energy storage systems. Additionally, the import of sodium antimonate for the production of solar glass will be exempt from customs duties.

The Budget outlines provisions for exempting customs duties on components and parts essential for manufacturing civilian training and other aircraft. There is also a proposed exemption on raw materials imported for the production of aircraft parts utilized in maintenance, repair, and overhaul by defence sector units.

Moreover, the Finance Minister suggested removing BCD on specific parts used in the creation of microwave ovens.

To address the issue of under-utilization of manufacturing capacity within special economic zones (SEZs) caused by global trade disruptions, Sitharaman introduced a one-time initiative permitting qualifying manufacturing units in SEZs to sell products in the domestic tariff area at reduced duty rates.

In the nuclear power arena, the Finance Minister proposed prolonging the existing customs duty exemption on the import of goods necessary for nuclear power projects until 2035, while also extending this advantage to all nuclear facilities regardless of their capacity.

The Budget also includes customs duty exemption on imported capital goods required for processing critical minerals within the country.

The entire value of biogas will be excluded when calculating the central excise duty owed on biogas-blended compressed natural gas (CNG), announced Sitharaman.