inance Minister extends export period for leather, footwear, textiles, and adds duty-free benefits for shoe uppers, electronics, and key industries
Finance Minister Nirmala Sitharaman on Sunday proposed to allow duty-free imports of specified inputs, which is currently available for exports of leather or synthetic footwear, to exports of shoe uppers as well.
She also added that “I propose to extend the time period for export of final product from the existing six months to one year, for exporters of leather or textile garments, leather or synthetic footwear and other leather products.”
This move will provide relief to leather exporters who are facing the impact of steep 50 per cent US tariffs. Shipments of leather and leather products slipped marginally by 0.23 per cent to USD 3.3 billion during April–December 2025–26.
Export-driven Sectors To Benefit
Measures to improve competitiveness in export-oriented industries include raising the ceiling for duty-free import of inputs used in seafood processing from 1 per cent to 3 per cent of the previous year’s FOB export value. For leather, duty-free benefits previously limited to leather and synthetic footwear exports will now extend to shoe uppers, while the export obligation period for leather goods, footwear, and textile garments will be extended from six months to one year.
Support For Manufacturing, Energy, And Electronics
The Budget provides customs duty exemptions on capital goods for manufacturing lithium-ion battery cells, which now cover equipment for battery energy storage systems. Basic customs duty on sodium antimonate, used in solar glass production, will be removed, while processing of critical minerals will also receive duty relief on imported capital goods.
In the consumer electronics sector, parts used in microwave ovens will be exempt from basic customs duty, supporting domestic production. The aviation industry will also benefit from exemptions on components for civilian and training aircraft and materials used in MRO operations by defence units.
