New Delhi, Feb. 3 -- The moderation in customs duty revenue growth projected for fiscal year 2027 (FY27) in the Union budget is due to lowering customs duty on raw materials and inputs to make Indian businesses more competitive, the chairperson of India's Central Board of Indirect Taxes and Customs (CBIC), Vivek Chaturvedi, told Mint in an interview.

Also contributing is trade liberalisation being pursued under free trade agreements (FTAs), which will secure greater external market access for Indian businesses, according to Chaturvedi. "Any agreement with preferential market access will be lowering tariffs. That will of course have a revenue impact," he said, adding that FTAs help Indian industry expand its global footprint.

The budget ...