India may revamp its customs duty regime, weeding out some exemptions and correcting inverted duty structures in order to encourage exports. An inverted structure is one in which the import duty on finished goods is lower than that on the materials or parts that go into making such a product, thus acting as a disincentive for local manufacture.

There will be a review with respect to encouraging domestic manufacturing. Sectors such as telecom, metals, batteries and chemicals for electric vehicles could see changes. Earlier duties were imposed on smart phones and telecom equipment and enhanced. A comprehensive review may now be undertaken that could lead to a reduction of duties on some critical inputs used in the manufacture of phones while raising them on finished products to further encourage domestic manufacture of handsets. Companies which have established assembly lines will be asked to locate their entire manufacturing chain in India.

Procedures for exporters and importers will be simplified. There is a move to anonymous assessment, aimed at greater efficiency and transparency in functioning. Single-window clearance has already been put in place for traders. Measures to boost exports, including tax refunds, are also on the anvil. Provisions to check tax evasion will be tightened.