GTRI calls for a big reset on India's import tariffs
The Global Trade Research Initiative (GTRI) just dropped a report pushing India to rethink how it handles import taxes.
Right now, most of the tax money comes from a tiny slice of imports, and GTRI thinks this old system is making trade expensive and slowing down exports.
What changes are they suggesting?
GTRI wants zero tax on most raw materials and key parts, plus a flat 5% duty on finished goods—phased in over a multi-year period (timeline not specified in the source).
They're also urging the government to fix weird situations where inputs are taxed more than final products, and to make customs rules simpler so businesses don't get tripped up by confusing paperwork.
Why does it matter now?
With Finance Minister Nirmala Sitharaman signaling reforms in the run-up to the 2026 Union Budget, these ideas could actually happen soon.
If adopted, the changes could help Indian manufacturers compete better globally by cutting red tape and pointless costs.
The report even calls out sky-high taxes like 150% on alcohol as basically encouraging people to dodge the system without really helping government revenue.