Not ready for zero tariffs

Although overall levels would be lowered, India still needs to keep reasonable duties

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NDIA SEEKS TO clinch the first tranche of a bilateral trade agreement (BTA) with the US to avert reciprocal tariffs of 26% plus most favoured nation duties from kicking in. There is no doubt a sense of urgency in this regard as US President Donald Trump announced a 90-day pause on reciprocal tariffs for most nations — barring China — that provides a window of opportunity to negotiate favourable deals. Vietnam and the European Union (EU), for instance, have offered a zero duty regime on their imports from the US. India has reportedly decided to steer clear of a zero tariff regime in its BTA negotiations. Given India's relatively low per capita income, the government realises that it still needs to keep reasonable tariffs for a wide range of agricultural items and even some industrial goods even as it lowers the overall level of its tariffs under US pressure.