Finance Minister Nirmala Sitharaman on Saturday announced that an extensive overhaul of India’s customs ecosystem is imminent, declaring it her “next major cleaning-up assignment” as the government prepares the groundwork for Budget 2026. She was speaking at the 23rd Hindustan Times Leadership Summit in New Delhi during a discussion with editor-in-chief R. Sukumar.
Customs Overhaul on the Horizon
The Finance Minister indicated that customs administration will undergo significant structural reform aimed at curbing leakages, tightening enforcement, reducing discretion, and accelerating trade facilitation. The move, she suggested, will form one of the core pillars of the upcoming budget cycle.
States Under Stress Over Freebie Model
Touching upon rising fiscal strain due to populist promises, Sitharaman noted that several states are dependent on expensive borrowing to fund giveaways. She reiterated that the Centre is in dialogue with state finance departments to enable loan restructuring and ensure long-term sustainability.
“Some states borrow at high cost only to distribute freebies. Their budgets cannot sustain what has been pledged,” she cautioned, adding that while electoral politics remains competitive, fiscal prudence cannot be undermined.
Rupee Depreciation Not Alarming, Says FM
Responding to questions on the rupee’s decline past ₹90, Sitharaman said the currency will eventually find its natural equilibrium. She stressed that India’s macroeconomic landscape today is far stronger than when similar criticism was raised during previous regimes.
“Exchange rates are very sensitive variables. The economy then was weak, inflation was soaring, and fundamentals were shaky. Today, India stands on a much sturdier footing,” she said.
Government’s Crisis Navigation
Sitharaman highlighted critical shocks that India has weathered over recent years:
- Post-pandemic recovery and growth stabilisation
- Supply disruptions due to geopolitical conflicts
- Border challenges impacting foodgrain supplies
- Election year expenditure balancing
- Economic restoration in Jammu & Kashmir after terrorist violence
HTLS 2025: Key Voices
The marquee event featured a diverse lineup including Prime Minister Narendra Modi, Chief Justice of India Surya Kant, External Affairs Minister S. Jaishankar, Bharti Airtel Chairman Sunil Bharti Mittal, J&K CM Omar Abdullah, UP CM Yogi Adityanath, Delhi CM Rekha Gupta, Pushmeet Kohli, Prof. James K. Galbraith, and global cultural figures such as Aamir Khan and Hugh Grant.
The summit theme, “Transforming Tomorrow,” reflects India’s positioning at a moment of decisive economic and technological reordering.
With Sitharaman setting the tone, customs reform is expected to emerge as the government’s next major intervention—placing compliance, digitisation and anti-evasion vigilance at the centre of India’s fiscal archi; tecture.
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