Union Budget 2026: Punjab transporters seek cross-border trade revival, industry tax relief

Transporters operating near the Attari–Wagah border in Punjab are pinning their hopes on the upcoming Union Budget, expecting policy signals that could help revive direct trade with Pakistan.

They say the border has remained closed since the Pahalgam terror attack last year, but trade has not entirely stopped.

According to transporters, goods from Pakistan are still entering India through third countries, pushing up costs for Indian businesses and depriving the government of direct revenue.

According to Kulwinder Singh Sandhu, transporter, “Goods are still coming from across the border, so why are they not opening it? The goods are entering the country indirectly. Products from Pakistan are going to Arab nations and then being sent here, so why are we not taking them directly through the border? If the border is opened, our products such as soybean, tomatoes, and various other items will go there (to Pakistan), and through that India will earn revenue.”

Transporters warn that prolonged closure of the border has severely impacted livelihoods in the region. 

They say if trade cannot resume, the government should step in with alternative employment options for those who once depended on cross-border commerce.

Sharanjit Singh,another transporter says, “If they do not want to open the border, then at least set up some factories and provide work. Only then will they know whether it works or not. What can we expect from the budget? Inflation is rising anyway. Things that earlier cost Rs 50 are now selling for Rs 100-150. Prices are rising, they are not coming down. A good government provides benefits to the people. We are not getting any benefits. There is no work here.’’

The impact is also being felt by small businesses along the border route.

Dhaba owners and roadside vendors say the halt in trade has brought daily activity to a standstill, affecting everyone from truck drivers to porters.

Manjit Singh, a dhaba owner says, “We want our business to operate the way it used to earlier. It's not just about Dhabas. Around 1,400 porters used to work here, there were so many truck drivers also. Everyone's work has come to a halt. So our appeal to the government is to think about opening the Punjab border and resume trade with Pakistan, so that the poor can find employment here.”

Amritsar's industrialists claim that high taxes are making it harder for companies to thrive.

They are seeking rationalisation of tax structures in the upcoming budget.

According to Ripita Tuteja, electric blanket manufacturer: “Relief in business – I personally feel that a businessman does not fear paying taxes, provided the tax is such that it does not pinch the businessman.”

Dinesh Tuteja, electric blanket manufacturer says, “We are buying things at 18% GST. All raw materials are available at 18%. We are selling the finished products at 5%. How are we going to make up this issue (difference)? From where will we get back the excess amount paid as GST?’’

Small and medium enterprises are also demanding changes to the Income Tax Act, particularly a provision that mandates payments to MSMEs within 45 days.

Sandeep Khosla, an industrialist says, “For the past two years, the issue around Section 43B under the MSME Act has been a matter of concern. It mandates that payments should be made within 45 days, otherwise, that amount is added to income and taxed. We have said multiple times that this should be rolled back. This provision is not in favour of MSMEs. People do not buy products from us because there is an obligation to make payment within 45 days. For small-scale industries, it is not a good rule. All industry platforms and associations have opposed this. If something does not suit the industry, then it should be taken back.”

However, some business owners claim that expectations have increased due to the government's emphasis on encouraging domestic manufacturing.

Dr JP Singh, managing director, Dhanwantari Ayurvedic:, “We have a lot of hopes from the budget. The way the government is propagating ‘Vocal for Local,’ we expect that the government will bring more facilities for small industries. To expand small units, subsidies should be provided so that machinery and infrastructure can be expanded.”

Finance Minister Nirmala Sitharaman is set to present her ninth consecutive Union Budget on February 1. It is anticipated that the budget will include reform initiatives to boost economic expansion in the face of international unpredictability.