Trade policy rethink: GTRI calls for tariff overhaul; simpler customs to cut costs and lift exports - The Times of India

The Global Trade Research Initiative (GTRI) has recently called for a significant overhaul of India's tariff structure and a simplification of customs procedures. Published on January 18, 2026, this proposal aims to substantially reduce import costs and boost the nation's export competitiveness.

Currently, India operates with a complex system comprising 27 different tariff rates, ranging from 0% to over 100%. The average Most Favored Nation (MFN) tariff stands at 18.3%. In contrast, GTRI proposes streamlining this to just 3-4 tariff slabs, specifically recommending rates of 0%, 2.5-5%, 7.5-10%, and 15-20%. This simplification is highlighted by comparing India's average MFN tariff to other major economies, such as China (7.5%), Brazil (10.2%), South Africa (6.8%), and Indonesia (6.9%), all of which maintain significantly lower average rates.

Beyond tariff rationalization, GTRI's recommendations extend to simplifying customs procedures. Key suggestions include reducing the frequency of physical checks on goods, enhancing risk management systems to target high-risk consignments more effectively, and streamlining documentation requirements. The overarching goal of these reforms is to cut import costs by an estimated 10-15% and increase exports by 5-8%. The report emphasizes that the existing high tariffs and convoluted customs processes contribute to increased transaction costs, ultimately diminishing the competitiveness of Indian goods in the global market.

For importers, customs brokers, and trade compliance officers, these proposed changes signal a potential shift in the operational landscape. Should these recommendations be adopted, businesses could anticipate a more predictable and cost-effective import environment. Importers should closely monitor these developments, as a move towards fewer, standardized tariff slabs and simplified customs processes could necessitate a review of current sourcing strategies, compliance protocols, and cost analyses. Staying informed will be crucial for adapting to a potentially streamlined, yet different, trade regulatory framework.