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Indian Customs is playing a pivotal role in achieving Viksit Bharat by securing borders, streamlining trade, and integrating India into global value chains
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Indian Customs stands at the threshold of India's centenary of independence with an ambitious vision for Viksit Bharat. It has undergone metamorphosis over the decades, evolving from a collector of duties to the architect of India's economic gateways. Through its threefold mission – fiscal, economic, and security – Indian Customs forms the foundation upon which much of Viksit Bharat's aspirations rest.
The most profound aspect of Indian Customs’ evolution has been its digital transformation. What began as modest computerisation with the Indian Customs Electronic Data Interchange System (ICES) in 1995 has matured into an advanced technological ecosystem fundamentally reshaping trade interactions. The digital journey reached a watershed moment with Turant Customs in 2019, implementing faceless, paperless, and contactless operations that represent more than mere automation, eliminating geographical constraints and local vested interests. The results speak for themselves: clearance times reduced from weeks to hours, documentation requirements slashed from hundreds of pages to a few clicks.
The improvement in India's Logistics Performance Index ranking to 38th reflects the Customs contribution to strengthening India's logistical framework across border management, transport infrastructure, international shipments, tracking capabilities, logistics quality, and delivery timeliness.
These digital advancements have enabled sophisticated analytics capabilities, with Project ADVAIT (Advanced Analytics in Indirect Taxation) representing Indian Customs’ venture into next-generation intelligence-driven enforcement. This platform employs machine learning algorithms to detect potential tax evasion and facilitates near real-time compliance. When paired with non-intrusive inspection technologies like advanced X-ray scanning systems at major ports, the organisation achieves the twin goals of enhancing security while accelerating legitimate trade—an essential balance for supporting India's participation in Global Value Chains (GVCs).
The significance of GVCs in modern economic development cannot be overstated. The World Bank's analysis demonstrates that a mere one percent increase in GVC participation boosts per-capita income by more than one percent—twice the impact of conventional trade. Indian Customs has positioned itself as an enabler of India's GVC integration through targeted interventions like the Authorised Economic Operator (AEO) programme, which offers preferential treatment for businesses demonstrating consistent compliance. This creates a virtuous cycle where companies maintain high standards while benefiting from accelerated procedures necessary for ‘just-in-time’ manufacturing that global production networks demand.
A compelling illustration of this GVC integration success is the production facility for Dassault's Falcon 2000 jet components in Nagpur's Special Economic Zone. These components traverse three continents—Asia, Europe, and North America—with India as a crucial node in this global manufacturing network. Such integration would be impossible without the predictable, efficient customs procedures that align with global standards and the robust logistics infrastructure that Indian Customs has helped develop.
The improvement in India's Logistics Performance Index ranking to 38th reflects the Customs contribution to strengthening India's logistical framework across border management, transport infrastructure, international shipments, tracking capabilities, logistics quality, and delivery timeliness. This logistical transformation has helped reduce dwell times at some Indian ports from approximately thirty days to just three, matching Singapore's world-leading standards. The enhanced logistics capabilities have proven instrumental in implementing comprehensive trade facilitation measures beyond mere procedural simplifications.
The implementation of the Single Window Interface for Facilitating Trade (SWIFT) in 2016 fundamentally transformed how businesses interact with government agencies. By consolidating documentation requirements from multiple regulatory bodies into a single portal, Indian Customs eliminated duplicative paperwork and accelerated approvals. India's progress on trade facilitation metrics reflects this commitment—its ranking in Ease of Doing Business jumped from 142nd in 2014 to 63rd in 2019, while its "Trading Across Borders" rank leapt from 133rd to 68th between 2016 and 2020. These improvements in trade facilitation have contributed to a more predictable business environment that supports industrial growth and job creation.
Active participation in international operations like DEMETER VI against illegal waste trafficking and Operation THUNDER against wildlife crime demonstrates Indian Customs' commitment to environmental protection. These enforcement actions position the department as an essential lever for sustainability objectives while simultaneously addressing security concerns that have grown increasingly complex in recent years.
The facilitative role of Customs extends beyond trade efficiency to supporting broader national objectives, including the protection of domestic industries. Indian Customs implements trade remedies designed to prevent injury to local manufacturers from unfair imports, while diligently collecting import duties and ensuring proper valuation to create a competitive environment. This balanced approach ensures that while India remains open to global trade, its domestic industries receive the protection necessary for sustainable growth – a critical consideration as the nation pursues self-reliance in key sectors while remaining globally integrated.
This multidimensional role extends further into advancing sustainable development goals through targeted interventions. Indian Customs implements circular economy principles at borders, enforcing regulations on waste movements, protecting endangered species, and preventing illegal resource extraction. Active participation in international operations like DEMETER VI against illegal waste trafficking and Operation THUNDER against wildlife crime demonstrates Indian Customs' commitment to environmental protection. These enforcement actions position the department as an essential lever for sustainability objectives while simultaneously addressing security concerns that have grown increasingly complex in recent years.
In today's intricate security landscape, Indian Customs is the first line of defence against various transnational threats. The technological approach to security—employing radiation portal monitors, explosive trace detectors, and advanced analytics—has yielded impressive results: 2,000 kg of smuggled gold intercepted in just the first half of FY2023-24 (a 43 percent increase over the previous year), over 8,223 kg of narcotics seized, all while accelerating clearances for compliant traders. This ability to enhance security without impeding legitimate trade flow represents one of Indian Customs’ most significant achievements. Yet emerging threats demand continuous evolution of capabilities through emerging technologies.
Looking ahead, several strategic imperatives emerge for Indian Customs as it envisions its contribution to Viksit Bharat. It must pursue deeper AI integration, moving beyond rule-based systems to true artificial intelligence that can predict evolving trade patterns, identify emerging risks, and optimise resource allocation. This AI-driven approach will complement ongoing efforts to expand blockchain-based systems for exchanging Certificates of Origin and other critical documents with partner countries, preventing forgery while reducing verification time—advancements that support the broader goal of harmonised border management.
The development of integrated solutions that coordinate activities across all border agencies will create truly seamless entry and exit points, aligning with strategic infrastructure developments supported by the Maritime Amritkal Vision 2047 and PM Gati Shakti.
The development of integrated solutions that coordinate activities across all border agencies will create truly seamless entry and exit points, aligning with strategic infrastructure developments supported by the Maritime Amritkal Vision 2047 and PM Gati Shakti. These physical and procedural improvements must be accompanied by human capital transformation in the digital age to seize new opportunities.
The path forward is not without obstacles. Infrastructure bottlenecks remain in certain regions, and balancing trade facilitation with enforcement requires continuous refinement of risk management techniques. Legal frameworks must evolve in tandem with operational changes. Digital disparities and capacity building represent another challenge. Additionally, disruptions like the pandemic and geopolitical risks have exposed vulnerabilities in supply chains, suggesting the need for resilience alongside efficiency in GVC integration.
Nevertheless, the transformative journey of Indian Customs—from revenue collectors to architects of economic borders—demonstrates its capacity for reinvention. By balancing a host of twin objectives—revenue collection with trade facilitation, security with speed, and compliance with simplification—Indian Customs exemplifies the holistic approach required for achieving Viksit Bharat. Through its three-fold mission, it ensures that India's economic gateways remain wide open for opportunity and firmly closed to threats.
Avinash Pandey, Indian Revenue Services (IRS), is Deputy Commissioner of Customs and Indirect Taxes, Ludhiana.
Views are personal and do not reflect those of any organisation or government.
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Avinash Pandey is a civil servant in the Indian Revenue Service (IRS), Government of India. His diverse experience spans taxation, international trade and commerce, digital ...
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