India is ready to reduce duty at more than half of US imports of $ 23 billion. This can be done in the first phase of the trade agreement of the two countries, which is undergoing talks. This will be the biggest cut made in the last several years, which aims to avoid the counter -charge of America. Two sources associated with this case have given this information.
India wants to reduce the impact of American fees. President Donald Trump’s retaliation globally is going to be effective from April 2. This is a threat that has disturbed markets and has confused all policy makers, including western colleagues of America. 2 government sources associated with the case told Reuters that in internal analysis, India has estimated that the counter tax would affect 87 per cent of its total US exports of $ 66 billion.
Under the agreement, India is ready to reduce the fees on 55 percent of American goods that it imports. Both sources said that these items can now be charged 5 per cent to 30 per cent. Sources refused to make their name public.
The source said that in terms of this category item, India is ready to significantly reduce the duty on goods worth more than $ 23 billion imported from the US and even completely eliminate some.
India’s Ministry of Industries, Prime Minister’s Office and Government Spokesperson did not respond to the email sent in this regard. Data from the World Trade Organization shows that the total average fee of America in total was around 2.2 per cent, while India’s fee is 12 per cent in comparison. The US has a trade deficit of $ 45.6 billion in trade with India.
At the time of Prime Minister Narendra Modi’s US visit in February, the two countries agreed to start a conversation to make a trade agreement and solve the ongoing tussle. India wants to compromise before imposing retaliation. Brandon Lynch, auxiliary American trade representative for South Asia and Central Asia, started talks with a delegation of American officials from Tuesday.
Government of India officials said that the duty cut on more than half of the US imports from the US would depend on the relief from the US retaliation. An official said that the decision to cut the fee is not final, and other options such as adjustment according to the area and interaction according to different products are also being discussed. An official said that India is discussing widespread fees reforms to remove obstacles uniformly, but such a conversation is still in the initial stage and it cannot be involved in a conversation with the US.
Trump adamant on fee
Prime Minister Modi was at the forefront of those who congratulated Trump on winning the election in November, but the US President continued to call India ‘fees’ and ‘King of Fee’ and he is not able to spare any country in terms of fees.
Both sources said that due to counter tariffs, India has estimated to increase by 6 to 10 per cent on goods like pearls, mineral fuels, machinery, boilers and electrical equipment, which contributes about half to the total exports to the US.
The second official said that retaliation could have the greatest impact on $ 11 billion drugs and automotive exports, as they depend on the US market. The official said that the new fee could benefit alternative suppliers like Indonesia, Israel and Vietnam. In order to ensure political approval by allies and opposition of Modi government, India has set clear boundaries of talks.
A third official said that meat, maize, wheat and dairy products have been excluded from the discussion, which costs 30 to 60 per cent, but can get relief on almonds, pistachios, porridge and quinoa.
A fourth official said that India may be ready to deduct the fee on automobiles in a phased manner, which is currently more than 100 percent.
First Published – March 25, 2025 | 10:25 PM IST
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