The Indian government is simplifying customs regulations in an attempt to alleviate the consequences of US tariffs. This was just one of the latest measures, along with restoring tariff exemptions for imports of raw materials (including leather) used by local manufacturers to produce goods for export.
India simplifies customs regulations
Indian exporters of clothing, shoes, and handbags met with Prime Minister Narendra Modi to request measures to support them during this difficult period caused by US tariffs of 50% on imports of Indian products. In particular, Bloomberg reports, they asked for a temporary suspension of loan and mortgage repayments and subsidized interest rates. They also called on the central bank to weaken the rupee in order to compensate, at least in part, for losses in their primary market: the United States.
Customs framework revised
In this context, the local government had already revised its customs framework to support exporters in the textile and leather sectors: it reintroduced zero tariffs on imports of materials, including wet blue, crust, and tanned leather, buckles, zippers, soles, linings, and accessories. However, these exemptions expired at the end of March 2025, as the government didn’t issue another extension. The measure aims to support exporters facing weaker demand due to the reciprocal tariff regime with the United States. According to ILM, in addition to supporting exports, the Indian government aims to simplify, make transparent, and improve the ease of doing business in India. This will make the Asian country more competitive in global markets.
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