Budget 2025: FM proposes 2 years Time Limit to finalize provisional Customs Assessment

The Union Finance Minister Nirmala Sitharaman is presenting her record eighth Union Budget - 2025 in Parliament amid high hopes of tax relief. Delivering the first full budget of Third Narendra Modi-government , Nirmala Sitharaman has become the only finance minister to present the Union Budget for eight consecutive times.

Among the key announcements in her speech was a significant proposal to introduce a two-year time limit for finalizing provisional customs assessments, a move aimed at streamlining customs processes, boosting trade efficiency, and supporting India’s ambitious goals of becoming a $5 trillion economy by 2030 and a Viksit Bharat by 2047.

Under the current system, delays in finalizing provisional customs assessments have led to prolonged disputes, financial uncertainties, and operational challenges for businesses. The Finance Minister highlighted that these bottlenecks hinder ease of doing business and create cash flow issues for importers. To address this, the government has proposed a strict two-year window for customs authorities to finalize provisional assessments. This reform is expected to bring greater clarity, predictability, and efficiency to the customs clearance process, benefiting both businesses and the broader economy.

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The proposal aligns with the government’s vision of transforming India into a global trade and manufacturing hub. By reducing delays and minimizing litigation, the two-year time limit will enhance trade facilitation, attract foreign investment, and strengthen India’s position in global supply chains. These improvements are critical for achieving the $5 trillion economy target by 2030, as they will boost exports, reduce costs for businesses, and create a more competitive business environment.

Industry experts have welcomed the move, noting that it reflects the government’s commitment to reducing bureaucratic hurdles and fostering a business-friendly ecosystem. The reform is particularly significant for sectors reliant on imports, such as manufacturing, electronics, and pharmaceuticals, where delayed assessments often lead to increased costs and inefficiencies. By streamlining customs processes, the government aims to enhance the competitiveness of these sectors, which are vital for India’s economic growth and job creation.

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The Finance Minister also emphasized that this proposal is part of a larger strategy to modernize India’s customs infrastructure. The use of advanced technologies like artificial intelligence and data analytics will further expedite assessments, improve accuracy, and enhance transparency. These efforts are integral to the Viksit Bharat vision, as they will ensure that India’s trade and economic systems are robust, efficient, and future-ready.

In conclusion, the introduction of a two-year time limit for finalizing provisional customs assessments is a progressive step toward simplifying trade procedures, boosting economic growth, and supporting India’s long-term development goals. By fostering a predictable and efficient trade environment, this reform will play a crucial role in helping India achieve its $5 trillion economy target by 2030 and realize the vision of Viksit Bharat by 2047.

The proposal underscores the government’s commitment to creating a competitive, business-friendly ecosystem while maintaining a balanced approach to revenue collection and economic growth.

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