FM rebuts US declare of excessive tariffs on imports
New Delhi : Union finance minister Nirmala Sitharaman on Tuesday refuted United States president Donald Trump’s cost that India is the “tariff king” in imposing excessive duties on American items, contending that efficient levies in India are far decrease than the notified charges.
Persevering with reforms to encourage home value-addition, India on February 1 introduced eradicating seven tariff charges on industrial items within the FY26 price range, leaving solely eight charges in place that embody the zero obligation, she stated on the Commerce Conclave 2025 organised by the Exim Financial institution in New Delhi.
Referring to the Union price range 2025-26, she stated it rationalised customs tariff construction for industrial items and eliminated seven tariff charges. With none particular reference to the US president, she stated: “For all of us, or these of us who nonetheless imagine within the commentary which was made within the US that India often is the tariff King. No, I need two issues to be remembered. Given as system of issues we search Parliamentary approval for deciding on the tariff price. You get hold of from the Parliament the permission to go as much as a sure degree, however successfully, you’re at a far decrease degree.”
“Efficient price is at a far decrease degree. However what will get revealed within the gazette could be that degree for which you get hold of permission from the Parliament. And it’s that degree which seems in all places…,” she stated, explaining that the levies notified within the gazette are the higher restrict whereas efficient duties are sometimes lower than the cap.
Articulating reforms in customs obligation construction in her price range speech on February 1, Sitharaman stated: “As part of complete overview of Customs price construction introduced in July 2024 Price range, I suggest to: (i) take away seven tariff charges. That is over and above the seven tariff charges eliminated within the 2023-24 price range. After this, there will likely be solely eight remaining tariff charges together with ‘zero’ price.”
An official who didn’t want to be named stated customs obligation rationalisation is likely one of the key reforms of the federal government. “Common customs obligation in India has come all the way down to 10.66%, which is nearer to the charges prevailing in Asian nations. So, the narrative that India’s customs duties are very excessive is flawed. In actual fact, many of the American items enter India throughout the efficient customs obligation band of 0-10%,” he stated.
“President Trump’s comment about India will not be new. He used the tag of ‘tariff king’ for India even in his first time period. Since then, India undertook a number of customs reforms and even diminished tariffs on particular gadgets of American pursuits similar to cars, prescription drugs and Bourbon whisky. Appears, he’s fixated in his opinion,” the official talked about above stated. In response to a Hindustan Occasions report from Washington, revealed on October 2, 2018, Trump made his feedback referring to India imposing 100% obligation on iconic bike, Harley-Davidson. Since then, import duties on bikes as much as 1,600 cc and above 1,600 cc have been slashed to 40% and 30%, respectively.
Union finance minister’s feedback got here at a time when India and the US are negotiating an early harvest deal inside a complete Bilateral Commerce Settlement (BTA) and talks are primarily centered on decreasing tariff and non-tariff limitations for mutual profit.
