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Informist, Thursday, Mar. 6, 2025

 

NEW DELHI – India's tariff rates are compliant with the norms of the World Trade Organization, and they only aim to protect the domestic industry, Finance Minister Nirmala Sitharaman said at a press conference in Andhra Pradesh. She said this in response to a question on US President Donald Trump's condemnation of New Delhi's trade policy that entails high rate of customs duty.

 

"When you are at a stage of development where your own industry has to grow, you will tend to make sure that as per the WTO-norms whatever trade tariff you can levy, you will levy," Sitharaman said on Thursday. "That is how it has been happening, it is consistent with the WTO norms."

 

While US goods face a weighted average tariff of 7.7% in India, Indian exports to the US face only 2.8% average duty. The duty differential may pose risk to Indian exports as 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 the US goods.

 

In the last five months, Trump has specifically expressed displeasure over India's tariff rates on several occasions. In the latest remark on Wednesday, Trump criticised India's tariffs on automobiles and auto components. 

 

India has been focussing on improving its trade relations with Washington after President Trump's Republican Party emerged victorious in the US election. Currently, Commerce and Industry Minister Piyush Goyal is also visiting Washington to meet US Trade Representative Jamieson Greer, Sitharaman said.

 

"Based on the negotiations (between Goyal and Greer), we will take a call," Sitharaman said. "We will keep India's interest on top and negotiate with them to see how best we can take it forward."

 

Last month, Prime Minister Narendra Modi had also visited Washington and met 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 the sides have set the aim to conclude the first tranche of the deal by December.

 

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.  End

 

US$1 = INR 87.11

 

Reported by Krity Ambey

Edited by Ashish Shirke

 

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