Press Release ID 2217892 dated 23.01.2026
1) Address Cost & Competitiveness Issues
Proposal: The Budget should urgently address the problem of inverted customs duty structures, where import duties on raw materials, components, or intermediates are higher than those on finished goods. FIEO recommends rationalisation and reduction of import duties on key inputs used by export-oriented industries so that input costs are aligned with finished product duties.
2) Shipping Support:
Proposal: The Budget should provide targeted policy and fiscal support for the development of Indian global-scale shipping lines, including access to long-term finance, viability gap funding, and supportive regulatory measures.
3) Fiscal & Tax Incentives – R&D Support
Proposal: FIEO recommends restoring the 200-250% weighted tax deduction for in-house R&D expenditure under Section 35(2AB) of the Income Tax Act and broadening its applicability beyond companies to include LLPs, partnership firms, and proprietorships, especially MSMEs.
4) Tax Support for Overseas Marketing
Proposal: The Budget should provide a 200% tax deduction for expenditure incurred on overseas marketing, branding, trade fairs, buyer meets, and promotional activities, particularly benefiting MSME exporters.
5) Extension of the 15% Concessional Corporate Tax for New Manufacturing Units
Proposal: FIEO proposes extending the 15% concessional corporate tax rate under Section 115BAB for new domestic manufacturing units for at least another five years beyond the earlier cut-off date of 31 March, 2024.
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