Finance Minister Nirmala Sitharaman proposed significant duty relief for export-oriented seafood and footwear sectors during her Union Budget 2026 presentation. These measures enhance cost competitiveness and boost foreign exchange earnings from labor-intensive industries.
Seafood Export Processing Boost
The duty-free import limit for specified inputs used in seafood processing for exports rises from 1% to 3% of the previous year’s FOB export turnover. This tripling provides greater flexibility for cold chain equipment, packaging materials, and processing aids, directly benefiting marine exporters.
Footwear Value Chain Extension
Duty-free import benefits currently available for leather and synthetic footwear exports now extend to shoe uppers production. This strategic expansion covers critical components, reducing manufacturing costs and supporting the National Manufacturing Mission’s footwear cluster development.
Export Competitiveness Enhancement
These input cost reductions strengthen India’s position in global seafood and footwear markets, complementing PLI schemes and mega textile parks. The reforms promise higher export realizations, job creation in coastal and leather clusters, and reduced working capital requirements for exporters.
