India to Cut Tariffs on 30 Items Before PM Modi’s US Visit: Report
India is set to review import tariffs on over 30 products, including luxury cars, solar cells, and chemicals, before Prime Minister Narendra Modi’s US visit. The move aims to counter US tariff measures and increase trade opportunities. According to a report, the peak import duty has been reduced from 150% to 70%, with Agriculture Infrastructure Development Cess (AIDC) imposed on select items.
The decision to reduce import tariffs is seen as a significant step towards promoting bilateral trade between India and the US. The move is also expected to improve India’s competitiveness in the global market, which has been affected by the ongoing trade tensions between the two countries.
The list of items that will have their import tariffs reduced includes luxury cars, solar cells, chemicals, and certain types of steel. The peak import duty on these items has been reduced from 150% to 70%, which is expected to make them more affordable for Indian consumers.
In addition to the reduction in import tariffs, the government has also imposed an Agriculture Infrastructure Development Cess (AIDC) on select items. The AIDC is a type of tax that is levied on certain goods and services to generate revenue for the government. In this case, the AIDC will be used to fund the development of agricultural infrastructure in India.
The decision to reduce import tariffs and impose the AIDC is seen as a significant step towards promoting bilateral trade between India and the US. The move is expected to improve India’s competitiveness in the global market, which has been affected by the ongoing trade tensions between the two countries.
The reduction in import tariffs is also expected to benefit Indian consumers, who will have access to a wider range of goods and services at competitive prices. This is particularly significant for luxury car buyers, who will now have to pay lower duties on imported vehicles.
The move is also seen as a sign of India’s commitment to reducing its trade deficit with the US. India’s trade deficit with the US has been increasing in recent years, and the government has been under pressure to take steps to reduce it.
The reduction in import tariffs is expected to have a positive impact on India’s economy, which has been growing at a steady pace in recent years. The move is also expected to create new job opportunities and increase economic activity in the country.
In conclusion, the decision to reduce import tariffs on over 30 products before Prime Minister Modi’s US visit is a significant step towards promoting bilateral trade between India and the US. The move is expected to improve India’s competitiveness in the global market, benefit Indian consumers, and reduce the country’s trade deficit with the US.
