Tariff Balancing
India’s reduction in import tariffs is being positioned as a move toward greater trade openness in the midst of a major global trade war launched by the US which threatens to target more countries. While the government is keen to distance itself from the perception of protectionism, the actual impact of these cuts on trade dynamics remains debatable. At the heart of this policy shift is a clear message: India wants to be seen as open to global trade while safeguarding its domestic industries.
The reduction of average import tariffs from 13 to 11 per cent and the lowering of duties on high-end motorcycles are steps in this direction. However, these headline-grabbing cuts do not necessarily translate into an easier import regime. Various surcharges and additional duties remain, keeping India’s overall tariff burden relatively high compared to other major economies. This move comes amid escalating global trade tensions, particularly between the US,........
© The Statesman
