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Informist, Wednesday, Mar. 5, 2025

 

NEW DELHI – New Delhi is counting on Commerce and Industry Minister Piyush Goyal's visit to Washington this week, and his meeting with US Trade Representative Jamieson Greer, to safeguard Indian exports from the implications of the reciprocal tariffs announced by the US government, officials aware of the matter said. The US is set to impose reciprocal tariffs on India and several other nations from Apr. 2 based on the duty levied by them on American goods.

 

During his meeting with Greer, Goyal is likely to discuss provisions of the proposed trade deal between India and the US, according to the officials. The Indian minister, who is currently in the US and is likely to return Friday, may highlight India's efforts towards tariff rationalisation and ask the US government to delay the imposition of tariffs on India, one of the officials mentioned above said. The Indian government has recently expedited its customs duty rationalisation exercise.

 

Last month, Prime Minister Narendra Modi had also visited Washington and met US President Donald Trump. The two leaders had agreed to negotiate a multi-sectoral bilateral trade agreement and set a target of taking their trade to $500 billion by 2030. Both sides have set the aim to conclude the first tranche of the deal by December.

 

India has been focussing its trade relations with Washington after President Trump's Republican Party emerged victorious in the US election. Trump has condemned India's trade policies at several instances in the last five months, even calling India a 'tariff king'.  

 

The US is India's top export destination, with its share in the country's total merchandise exports at about 17%. In 2023-24 (Apr-Mar), India exported goods worth $77.52 billion to the US and had a trade surplus of $35.32 billion.

 

There is a possibility that Goyal may also meet Tesla Chief Executive Officer Elon Musk, who also currently holds the office of senior adviser to the US President. Tesla was interested in starting its operations in India and there were discussions between the Indian government and the carmaker in early 2024, but these did not go anywhere. Musk wanted duty concessions on electric cars, to which the Indian government didn't fully agree.

 

In March 2024, the government cut the import duty for electric vehicles to 15% from 100%, but attached certain conditions to ensure domestic manufacturing. As per the conditions, companies must invest INR 41.5 billion or more in India, and they must also begin domestic commercial production within three years. They should achieve 25% localisation by the third year and 50% by the fifth.  End

 

US$1 = INR 86.96

 

Reported by Kuldeep Singh and Krity Ambey

Edited by Tanima Banerjee

 

 

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