Finance minister Nirmala Sitharaman said on Saturday that India’s next major economic reform will focus on overhauling the customs duty framework by lowering select tariffs, improving transparency, and reducing discretionary power among officials. Speaking at the HT Leadership Summit 2025, she explained that the changes will mirror the simplification carried out in the Income Tax Act, which will operate under a new statute from April.
Responding to a question on upcoming reforms, the minister said that the government intends to make customs procedures significantly simpler and less burdensome, with clearer and more transparent rules. She added that income tax reforms were aimed at easing taxpayers’ concerns about arbitrary assessments, which have now been reduced through a faceless evaluation system.
The customs overhaul will include rationalising duty rates. While tariffs have been gradually lowered in the past two years, Sitharaman said some items still remain above optimal levels and will be corrected.
Discussing the broader economy, she noted that despite challenges such as the pandemic and global supply chain disruptions, India’s consumption will rise with lower taxes. She expects economic growth to reach 7% or higher this year.
Commenting on the rupee’s recent depreciation, she said currency movements must be viewed in the context of India’s strong economic fundamentals and global standing.
