Asheville: India is preparing further customs and banking reforms, including risk-based import screening and a high-level review of the banking sector’s role towards building a developed India, Union Minister for Finance & Corporate Affairs Nirmala Sitharaman said.
In an exclusive interview with IANS on the sidelines of the G20 Finance Ministers’ meeting here, FM Sitharaman said the next phase would build on changes already made in direct and indirect taxation.
“We’ve done quite a few things about the direct and indirect taxes. Customs, we’ve done some, we’ll have to do more. We’ll be taking those up,” she said.
The government is working to make the movement of imported goods through Indian ports more seamless, the Finance Minister said.
A key proposal involves deploying scanners and concentrating checks on high-risk importers. Other consignments could then be cleared automatically, reducing delays for businesses and easing congestion at ports.
“We are trying to bring in scanners and have high-risk importers alone go through them, and the rest of them can be cleared automatically,” FM Sitharaman said.
“A lot of reforms in the customs area,” she added.
The approach would allow customs authorities to focus their scrutiny on higher-risk imports while facilitating faster clearances in other cases.
However, FM Sitharaman did not provide a timetable for introducing the scanners or implementing the proposed automatic clearance system.
The government has also appointed a high-level committee to examine the banking sector and its future role in achieving India’s development goals.
“The banks, of course, we’ve appointed a high-level committee to look into banking for Viksit Bharat,” she told IANS.
“That committee will also give its report,” she added, without indicating when its recommendations would be submitted.
Asked about the next stage of the government’s wider reform programme, FM Sitharaman said changes would be taken up as requirements emerged.
“Well, we take it as we go along,” according to her.
The Finance Minister said the Centre had worked with state governments to improve the business environment and reduce the compliance burden on citizens and companies.
“I think together with the states, I will also credit the states, many of them who have come forward to make doing business a bit easier,” she said.
“We, as you know, have reduced a lot of compliance burden on the citizens, whether it is by reforming the Acts, by simplifying the regulations, and also by removing archaic laws,” she added.
More than 1,000 laws had been removed and about 40,000 regulations simplified, according to the Finance Minister.
The government was also maintaining regular consultations with industry, businesses and trade while pursuing bilateral trade and investor protection agreements.
“Constantly, we are engaging with the industry, with businesses, with trade,” FM Sitharaman said.
“Also, the way in which bilateral trade agreements are being signed, we are now pushing ahead with investor protection agreements as well,” she added.
FM Sitharaman said confidence in the Indian banking system was reflected in foreign deposits and investments made by Indians living overseas. The indicators showed a positive story about trust in Indian banks and the country’s macroeconomic position, she said.
The proposed reforms come as India reported 7.8 per cent growth in the first quarter of the 2026-27 financial year. Manufacturing grew by 9.2 per cent, while the financial and professional services sector expanded by 12.1 per cent.
FM Sitharaman also cited the expansion of UPI, NPCI systems and QR-code payments as factors helping small and medium-sized businesses gain access to global markets. She said reforms across government departments and the financial sector had brought out the robustness of the Indian economy.
(IANS)
