Amid the presentation of the Union Budget 2026, finance minister Nirmala Sitharaman has highlighted the need for multilateralism. The union minister's remarks on Sunday comes as India faces 50 percent tariffs from the US, of which 25 percent is a penalty for New Delhi's purchase of Russian oil.
“Today we face an external environment where trade and multilateralism is imperative,” said Sitharaman while presenting the union budget in the Parliament. Follow LIVE updates on Budget 2026 here
Adding that India will continue to take steps towards Viksit Bharat, the finance minister also said that with this new budget a “reform express” will be underway.
{{/usCountry}}Adding that India will continue to take steps towards Viksit Bharat, the finance minister also said that with this new budget a “reform express” will be underway.
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"Our Kartavya is to ensure every family, community, and sector has access to resources, amenities and opportunities," she said, adding that reforms such as GST, labour codes, and quality control order, have been rolled out since August 15.
The "Reform Express is on its way" and the momentum will continue, Sitharaman said.
Centre reduces tariff rate, exempts customs duty
In line with the government's aim to promote exports and lift the seafood industry hit by US tariffs, FM Sitharaman propose to increase the limit for duty-free imports of specified inputs used for processing seafood for export from the current one per cent to three per cent of the FOB value of the previous year's export turnover.
As a counter to US tariffs, Sitharaman announced that the government will be reducing the tariff rate on all dutiable goods imported for personal use from 20 per cent to 10 per cent.
The Centre also moved to promote exports and lift the seafood industry, which was majorly hit by US tariffs.
"I propose to increase the limit for duty-free imports of specified inputs used for processing sea foods for export from the current one per cent to three per cent of the FOB value of the previous year's export turnover. I also propose to allow duty-free imports of specified inputs, which is currently available for exports of leather or synthetic footwear to exports of shoe uppers as well," said Sitharaman.
Trump's tariffs on India
In 2025, US President Donald Trump announced 25 percent on India for being the “maharaja of tariffs' during his Liberation Day exercise. However, a few weeks later, the Republican leader announced an additional 25 percent tariff on India due to its purchase of Russian oil, further accusing New Delhi of “fueling Putin's war in Ukraine.”
With 50 percent tariffs on Indian goods to the US, New Delhi faces the highest tariffs placed by Washington, along side fellow BRICS partner Brazil.
While India has defended its move by putting its consumer's first, the US President continues to warn of more tariffs, especially as part of his bid to end the Russia-Ukraine war, which has continued to escalate since 2022.
Furthermore, Trump also recently “green lit” a bill which would allow tariffs up to 500 percent on countries trading with Russia for oil, petroleum and uranium.