Sitharaman: US Tariffs "No Influence" on Budget's Customs Duty Overhaul

"Custom duty overhauling exercise has been going on for the last two years. The US matter has had 'no influence' on Budget," Sitharaman told reporters in the national capital in the context of the proposals announced in the Union Budget 2026-27 for the deduction in Customs and Central Excise for certain products.

The Union Minister said, "We didn't make any assessment on the impact of US tariffs."

Sitharaman in her budget speech yesterday, had proposed deductions in Customs and Central Excise for certain products, which she said aims to further simplify the tariff structure, support domestic manufacturing, promote export competitiveness, and correct inversion in duty.

Products/sectors that saw duty revisions include Marine, Leather, and Textile products; the Energy sector; and capital goods required for the processing of critical minerals. Components and parts required for the manufacture of civilian, training, and other aircraft were also covered. They also include 17 drugs or medicines, among others.

On disinvestment, Sitharaman said there is no change in the government's stance and that the IDBI Bank disinvestment will proceed soon.

"The pace, and direction of disinvestment will set the tone for revenue generation, and we will certainly look at more on disinvestment and asset monetisation", the Finance Minister said.

Secretary, Department of Investment and Public Asset Management (DIPAM), Arunish Chawla, had told ANI in a post-budget interaction that the strategic disinvestment of IDBI Bank has "moved to the third phase," adding that "now the technical and financial bids will be invited."

In May 2021, the Cabinet Committee on Economic Affairs gave its in-principle approval for the strategic disinvestment of IDBI Bank, along with the transfer of management control.

Further speaking on the roadmap for the banking sector, the finance minister said, "Banks today are in a position of strength, and the quality of assets are high. But we don't want to leave it there, there is a need for futuristic banks."

"The high-level committee announced in the Union Budget 2026 will look into bank consolidation, and the terms of reference for high-level committee will be drafted very soon," Sitharaman said.

A High-Level Committee on Banking for Viksit Bharat was announced in the Budget 2026. The committee will comprehensively review the banking sector and safeguard financial stability, inclusion and consumer protection.

"It may take some time. Before the end of this Financial Year, we will be able to give further information in this matter," the Finance Minister said.

- ANI