A Win-Win? India's Economic Outlook Amidst U.S. Tariff Changes
Chief Economic Adviser V Anantha Nageswaran signals optimism about the potential removal of penal tariffs on India's imports post-November 30. While a 50% tariff is currently in force, some key sectors are exempt, and ongoing discussions with the U.S. might ease these trade tensions.
- Country:
- India
In a hopeful assertion, Chief Economic Adviser V Anantha Nageswaran announced the potential withdrawal of the penal tariffs on Indian imports after November 30. Speaking at a Merchants' Chamber of Commerce & Industry event in Kolkata, he highlighted the role of ongoing talks between India and the US in resolving these tariff issues.
In recent years, India's export growth has reached an impressive USD 850 billion annually, and could possibly climb to USD 1 trillion, equivalent to 25% of the GDP. However, a significant hurdle remains, as the United States increased tariffs from 25% to a staggering 50% on certain imports, following the International Emergency Economic Powers Act enacted by the Trump administration.
Fortunately for India, key categories such as iron, steel, aluminium, vehicles, and copper products are exempt from this increase. Reports indicate that even with the higher tariffs in place, approximately 30.2% of India's exports to the U.S. will continue entering duty-free.
(With inputs from agencies.)
Google News