Union Budget 2025-26: Customs duty hike likely on key pharma, RE products

Key components in the renewable energy industry such as special bearings, gearboxes, yaw components, wind turbine controllers are currently subjected to a concessional customs duty of 5 per cent

In the upcoming 2025-26 Budget, sectors such as renewable energy and pharmaceutical may see an increase in basic Customs duty (BCD) rates on a raft of items set to lose their concessional rates after the sunset clause ends on March 31 this year. 

Key components in the renewable energy sector, such as special bearings, gearboxes, yaw components, and wind turbine controllers, currently attract a concessional Customs duty of 5 per cent. Moreover, parts required for the manufacture and maintenance of blades for rotor generators, along with raw materials for producing these blades and their sub-components, are included in this category,