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Tariffs and India report – GTRI
March 1 , 2025
11 hrs 0 min
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- The Global Trade Research Initiative (GTRI) suggested the government identify tariff lines (or product categories) where India can eliminate the import duties for American imports without harming domestic industries and agriculture.
- India may propose a zero-for-zero strategy to the US, eliminating tariffs on 90 per cent of industrial goods to prevent aggressive tariff hikes.
- Though the 'zero for zero' tariff strategy violates the rules of the World Trade Organisation (WTO), it is less harmful compared to negotiating a full FTA.
- If the US imposes a uniform tariff, Indian exports could face an additional tariff of 4.9 per cent, compared to the current 2.8 per cent.
- Indian farm exports would be hit "hardest", with shrimp, dairy, and processed foods facing tariffs of up to 38.2 per cent.
- Indian farm exports to the US currently face a 5.3 per cent tariff, whereas US farm exports to India face a much higher 37.7 per cent import duty.
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