India Sheds 'Tariff King' Label with Reduction in Tariff Rates
Finance Minister Nirmala Sitharaman defended India's tariff policies against U.S. allegations of high tariffs, citing recent budgetary measures that reduced the number of tariff rates to eight. She highlighted efforts to boost domestic manufacturing and exports by aligning India's customs duties more closely to Southeast Asian countries.
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Finance Minister Nirmala Sitharaman pushed back against claims that India is a 'tariff king', emphasizing a significant reduction in tariff rates as outlined in the latest budget. The number of tariffs has been pared down to eight, addressing former U.S. President Donald Trump's allegations of India's high tariffs.
Sitharaman explained that the country's tariff policies require parliamentary approval, ensuring that while the ceiling may be set high, effective rates are much lower. She highlighted the latest efforts to promote domestic manufacturing and exports by bringing India's average customs duties closer to those in Southeast Asia.
At a Trade Conclave held by India Exim Bank, Sitharaman reiterated that India's tariff reforms aim to facilitate trade, reduce the burden on businesses, and enhance value addition. With these reductions, India's average customs duty now stands at 10.66%, aligning more closely with the ASEAN nations.
(With inputs from agencies.)
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