India's customs framework to be revamped, says Nirmala Sitharaman
06 Dec 2025

Finance Minister Nirmala Sitharaman has announced a major overhaul of India's customs framework.

The move, which will be her next big reform push, is aimed at simplifying and making customs procedures more transparent.

The minister emphasized the need to make these processes less cumbersome for people and businesses alike.

"A complete overhaul of the customs area is on the cards," she said during her address at the HT Leadership Summit 2025.

Customs authorities' role in cross-border trade
Trade regulation

Customs authorities are responsible for collecting tariffs and regulating the cross-border movement of goods.

This includes everything from vehicles and hazardous materials to animals and personal belongings.

Sitharaman stressed that the government has been steadily reducing customs duties over the last two years, with plans to review items where tariffs are still above optimal levels.

"So customs is my next big cleaning-up assignment," she said, highlighting her commitment to this reform initiative.

Sitharaman compares customs reform to past tax reforms
Comparison

Drawing a parallel with past tax reforms, Sitharaman recalled how India's income-tax regime was once marred by an administrative burden.

She said that reforms like faceless assessments have made the system "cleaner and less intimidating," and similar improvements are needed in customs now.

However, she also warned that this task requires a delicate balance between simplifying processes while ensuring strong safeguards against illicit or contraband goods.

A priority in economic reform pipeline
Reform agenda

Sitharaman reiterated that customs reform is a key priority in the government's broader economic reform agenda. The proposed changes will include rationalizing customs duty rates, increasing transparency, and reducing officials' discretion.