Page 21 - Policy Economic Report - Jan 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

o Targeted tax measures to support manufacturing, services, and export-oriented sectors, including
incentives for data centres, cloud services, toll manufacturing, and bonded warehousing.

o Reforms to support foreign investment and global mobility, including exemptions and simplified
tax treatment for non-resident experts and foreign service providers operating from India.

o Rationalisation of customs and indirect tax provisions to support energy transition, critical
minerals, electronics manufacturing, and export competitiveness.

o Continued emphasis on predictability, transparency, and stability in the tax regime, aimed at
improving India’s overall investment climate and long-term investor confidence.

Figure 8: Trend in Tax receipts

Source- MoF

Ease of Doing Business

o Multiple initiatives have been taken in the Ease of Doing Business sector. For instance, Cargo
clearance approvals from various Government agencies to be seamlessly processed through a
single and interconnected digital window by the end of the financial year.

o For goods not having any compliance requirement, clearance is to be done by Customs
immediately after online registration is completed by the importer.

o The Customs Integrated System (CIS) is to be rolled out in 2 years as a single, integrated, and
scalable platform for all the customs processes.

o Also, the Utilization of non-intrusive scanning with advanced imaging and AI technology for risk
assessment is to be expanded in a phased manner with the objective to scan every container
across all the major ports.

Union Budget in realm of energy sector

The Union Budget 2026-27 (“Budget”) gives a thrust to India’s infrastructure sector, positioning it as one
of the seven strategic and frontier pillars underpinning long-term economic growth. The Budget also
underscores a clear focus on long-term energy security, with a focus on capture, utilization and storage

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