What are the key customs duty changes in Union Budget 2026?

Budget 2026 lowers import duties on phone components, EV batteries, aircraft parts, and inputs for solar and nuclear projects. It raises levies on luxury goods and tobacco. The aim is to support local manufacturing, keep exporters competitive, and protect revenue. CBIC will also simplify procedures to reduce clearance time and compliance costs.

How will the single-window customs system help traders?

A single-window lets traders file documents once for multiple agencies, with pre-arrival processing and better risk-based checks. This can cut dwell time, reduce demurrage, and lower working-capital lockups. It also improves predictability at ports and airports, which helps MSMEs plan shipments, negotiate freight, and meet delivery commitments more reliably.

Which consumer categories may get cheaper or costlier now?

Mobile phones and some leather goods may get cheaper where input duties fell, while luxury watches, imported alcohol and tobacco could cost more. Certain staples using costlier imported inputs may see limited price increases. Actual shelf prices will depend on brand pricing power, inventory cycles, and how retailers manage promotions and mix.

How does the STT hike on F&O affect market participants?

A higher STT on derivatives raises trading costs and break-even thresholds, which may reduce high-churn strategies. Watch for shifts in volumes, wider spreads, and higher roll costs near expiry. Hedgers can adjust lot sizes, tenors, or hedge ratios to stay efficient. Brokers may tweak fee structures as liquidity concentrates in the most active contracts.

Law and Government

CBIC Today, February 3: Budget 2026 Cuts Duties, Simplifies Customs

ByDanny Kontos February 3, 2026February 3, 2026

CBIC sits at the core of Union Budget 2026, which lowers tariffs on phone components, EV batteries, aircraft parts and clean energy inputs, while raising levies on luxury goods and tobacco. The customs duty changes aim to boost local value-add and protect revenue. CBIC also rolls out a single-window customs system to speed clearances, supporting trade facilitation. A higher STT on F&O lifts near-term trading costs. We break down what this means for importers, exporters and Indian investors today.