India plans to reassess import tariffs on over 30 items, including luxury cars and solar cells, ahead of the PM’s US visit.
In a strategic move ahead of the Prime Minister’s visit to the United States, India is set to review import tariffs on more than 30 items, including luxury cars, solar cells, and machinery. The reassessment could pave the way for increased imports from the US, signalling a potential shift in trade policies.
The review comes as part of India’s broader strategy to navigate trade tensions and counter escalating tariff actions by the US. The government has already taken steps in this direction, reducing tariffs on select items such as high-end bikes, cars, and chemicals in the recent Budget. However, to balance revenue streams, it has imposed an additional Agriculture Infrastructure Development Cess (AIDC) on various goods.
As per reports, the budget introduced significant reductions in basic customs duties, slashing the peak import tariff from 150% to 70%. Additionally, average tariff rates have been lowered to below 11% from the previous 13%. While these cuts are expected to encourage imports, the government has simultaneously raised AIDC on certain products to offset potential revenue losses.
The upcoming tariff review aligns with India’s ongoing trade negotiations with the US, aiming to foster stronger economic ties while ensuring a balanced approach to domestic industry protection.
Source: Exim News Service: New Delhi
