Deloitte India has recommended that the Union Budget 2026-27 focus on rationalizing import duties and increasing allocations to bolster domestic manufacturing and exports. Key suggestions include lowering duties on parts and components while increasing them on finished goods to encourage domestic value addition. Reforms to the Special Economic Zone (SEZ) regime, such as duty-free domestic supply and eased sub-contracting, are also proposed to enhance competitiveness and reduce litigation. Broadening the Phased Manufacturing Program and enhancing export promotion initiatives are further recommended.