India Willing to Reduce Tariffs Further to Boost Trade With US

The Indian Side Has Signalled Wide-Ranging Cuts in Imports of Cars, Chemicals, Electronics, Medical Devices, Officials Said

- Zia Haq

NEW DELHI: Indian negotiators have expressed willingness to make deeper tariff cuts, including zero duty on some agricultural products, to help boost US-India trade to $500 billion by 2030, a goal set during Prime Minister Narendra Modi's summit with US President Donald Trump earlier this month, trade experts and officials advising the government have said, requesting anonymity.

To ward off a potential trade war, the Indian side has signaled wide-ranging cuts in imports of cars, chemicals, electronics, pharmaceuticals and medical devices for a multi-sector bilateral trade with the US, an official with knowledge of the matter said on Sunday.

A team in Washington, led by commerce minister Piyush Goyal, is also trying to counter a negative perception among the Americans that India is a high-tariff nation, by citing recent examples of several changes in tariffs, a second official said.

These include decisions to pare tariff on high-end motorcycles to 100% from 110% and on American bourbon whiskey to 30% from 50% earlier.

The Indian side has signaled willingness to have a zero-duty framework on imports of specific quantities of lentils and peas, the first official said.