Union Budget 2026: Duty-free import limit raised for seafood, leather export inputs

Presenting her ninth consecutive Union Budget on Sunday, Finance Minister Nirmala Sitharaman announced plans to raise the duty-free import limit for specified inputs used in the export of processed seafood products and leather or synthetic footwear. For the processed seafood segment, the limit would be increased from one per cent to three per cent of the free-on-board (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," the finance minister said in her budget speech. Further, Sitharaman announced an extension of the permissible time period for the export of final products, increasing it from the current six months to one year. The revised timeline will apply to exporters of leather or textile garments, leather or synthetic footwear, and other leather products.India’s exports of leather and leather products saw a marginal decline of 0.23 per cent, falling to USD 3.3 billion during April–December 2025–26.In contrast, seafood exports recorded strong growth in the same period. Shipments rose 15.53 per cent to USD 6.5 billion, compared with USD 5.67 billion during April–December last year.The announcements are significant as these labour-intensive sectors are facing mounting challenges in the United States, a key export market for India. The Trump administration has imposed a steep 50 per cent import duty on Indian goods entering the American market.