New Delhi, Nov. 11 -- Manufacturers are seeking lower import duties on raw materials and intermediate goods in the budget for 2027-28, arguing that high input costs are hurting domestic production and making Indian goods less competitive, three people familiar with the discussions said.

From aluminium and textiles to chemicals and export-oriented manufacturing, industry associations have flagged high and uneven duties on inputs as a cost burden for downstream producers, particularly micro, small and medium enterprises (MSMEs). In some cases, they have argued, imported finished products enjoy lower tariff rates than the raw materials used by domestic manufacturers.

The demands come as the finance ministry begins preparations for the next...