A Global Trade Research Initiative’s (GTRI’s) flagship report on Friday has put the spotlight on a plethora of possibilities for the Indian Government to tackle US President Donald Trump’s reciprocal tariffs that can potentially hit the Indian trade setup hard enough. One of which has pulled many eyeballs, including the government itself — India can consider a ‘zero-for-zero’ tariff approach, which is practically lowering import duties on select products that it does not import in higher quantities from the US as part of the proposed Bilateral Trade Agreement (BTA).
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On this note, government officials have revealed to a national media publication that the consideration was in full swing, and discussions commenced with stakeholders in sectors like automobiles and auto components, in which American imports cannot threaten domestic manufacturers on a large scale.
The report stated that the Indian government’s commerce department has simultaneously initiated communication with revolving ministries to identify products where on-duty concessions could be offered without damaging the local industry.
Context of the reciprocal tariff
President Trump has affirmed that the US levies low tariffs on imports while other countries impose higher tariffs and trade barriers on American goods. According to the president, this leads to a USD 1 trillion US trade deficit that also harms US domestic industries and, subsequently, employment opportunities.
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