India’s Tariff Rates: Lower Than Approved
Finance Minister Addresses US Claims
NEW DELHI: Finance Minister Nirmala Sitharaman recently spoke about claims made by the US. She said India is not a “tariff king.” She explained that the actual duties are lower than the rates approved by Parliament. She also mentioned that the government has started reforms to make the tariff system simpler.
Key Points to Remember
- India asks Parliament to approve tariff rates.
- Actual tariff rates are much lower than approved rates.
US Claims and India’s Response
US President Donald Trump often called India a “tariff king.” He pointed to high duties on farm and industrial products. But Indian officials have said that even the approved rates are lower than the rates promised to the WTO.
Trade Deals and Reforms
Sitharaman noted that trade deal talks with the EU and the US are moving fast. She also talked about recent changes. These include cutting the number of tariff rates to eight in the last Budget.
- Now, there are only eight tariff rates, including a zero rate.
- Reforms aim to lessen the burden on trade.
- Changes support making goods, adding value, and exports.
After the Budget changes, the average customs duty rate fell to 10.7% from 11.7%. New trade deals with the UK and the European Free Trade Association should open new markets for Indian exporters.
Indian Exports and Innovation
Sitharaman stated that Indian exports are doing well despite global challenges. She urged exporters to focus on new ideas and finding new markets. She also said that India is exporting well-made products that meet high standards.
“India is not just about exporting raw foods or goods. It is exporting well-made products today, which meet high standards,” Sitharaman said.
