New Delhi: Budget documents have indicated that India’s customs duty forgone owing to preferential tariff reductions under the free-trade agreements (FTAs) signed so far could cross Rs 1 trillion in 2026-27 (FY27), reported Business Standard. India’s customs revenue forgone for the FTAs in FY26 was Rs 98,569 crore, higher than the budget estimate of Rs 94,172 crore for the same year.
The countries part of the Association of Southeast Asian Nations (Asean) are expected to account for the highest revenue impact in terms of customs duty foregone among partner countries and blocs, amount to a whopping Rs 40,833 crore in FY27.
The Business Standard report said that India has flagged the need for an urgent review of the trade agreement with Asean, owing to the fact that imports from Asean nations have increased at a much faster pace than exports from India.
While in August 2023both the sides had agreed to complete the review of the existing agreement on goods by 2025, the deadline was missed and India has expressed its displeasure over the slow pace of the review process.
The other countries which will also contribute to the foregone customs duty because of FTAs include Japan (Rs 11,365 crore), South Korea (Rs 10,872 crore) and Australia (Rs 5,107 crore).
India’s trade deal with UAE will result in Rs 9,267 crore customs revenue being forgone in FY27, reported Business Standard.
