Latest news with #EximBankTradeConclave2025
Mint
18 hours ago
- Business
- Mint
India is not a tariff king, says Nirmala Sitharaman
New Delhi: Finance minister Nirmala Sitharaman on Monday rebutted the label of 'tariff king' often used by US President Donald Trump for India, and said the country's effective tariff rates are far lower than they appear. Speaking at the Exim Bank Trade Conclave 2025 in the capital, the minister said India seeks parliamentary approval for setting tariffs at a certain level, but the effective rates notified are much lower than the ceiling approved. This creates the impression abroad that India's tariffs are high. President Trump, who imposed a now-suspended 26% reciprocal tariff on Indian exports, first called India 'tariff king' during his first term in 2019, and subsequently this year in February. The universal 10% baseline tariff imposed by the US on all imports into its soil is now applicable to Indian exports as well. The US administration determined reciprocal tariffs on each country by dividing its own trade deficit with the exporting country by the total exports of that country into the US, then turning it into a percentage figure and dividing it by two, which many critics called 'overly simplistic'. Sitharaman's explanation of India's tariff procedures comes at a time New Delhi and Washington are in the last leg of a trade negotiation to avoid the 26% reciprocal tariff the Trump administration announced in April, which has been suspended till 9 July to facilitate trade talks. 'Negotiations are intensely going on,' the minister said. Sitharaman also said Indian exports are doing well despite mounting challenges in the global trade scenario. The minister said those who believe in the US' commentary that India is the tariff king, should understand the way tariffs are given effect in India. Sitharaman said in the Indian system, the government secures Parliament's approval for setting tariffs at a certain level, but effectively, it is implemented at a far lower level. 'The effective tariff rate is at a far lower level. But what gets published in the Gazette would be the level for which you obtain permission from the Parliament. And it is that level which appears everywhere and people then tend to think, probably rightly, that is the rate at which we are imposing tariffs,' the minister said. The procedures have given rise to the 'not-so-desirable picture of being very restrictive and regressive about tariff,' Sitharaman said. The minister added that many goods have tariffs lower than the rate cleared by Parliament. In addition, the government removed seven tariff rates, reducing the total to just eight. 'So, for those of us who still think there's something about the tariff story in India, I want this to be clear. There are only eight rates, including the zero rate,' the minister said, adding that India has introduced a lot of reforms to support manufacturing and domestic value addition, promote exports and facilitate trade. Challenges are mounting for Indian exporters, but the government's targeted measures are helping, Sitharaman added. India's production-linked incentive (PLI) schemes have transformed its export basket from traditional commodities to high-value-added products, she said. In FY25, India's total exports reached an all-time high of $825 billion, achieving 6% growth over the previous year, and a significant leap from the $466 billion in 2013–14, the minister pointed out. India has deepened participation in global value chains, the minister said, adding that Apple India's iPhone contract manufacturers have crossed the 20% domestic value addition (DVA) threshold across variants.
Gulf Today
20 hours ago
- Business
- Gulf Today
India's exports outpaced global growth to touch record high in FY25
India's Finance Minister Nirmala Sitharaman on Tuesday lauded the resilience of Indian exporters for successfully 'swimming against the tide' to reach a record high turnover of $825 billion in total exports despite the global slowdown. 'India's total exports reached a record high of $825 billion, achieving 6 per cent growth over the previous year and significantly, $466 billion over 2013-14. While global exports grew by only 4 per cent. India's exporters managed to fast-track and cross 6.3 per cent,' she said, in her address at the Exim Bank Trade Conclave 2025 here. 'In the last few years, global trade and growth have suffered; global growth has not seen an uptick, according to the WTO, the IMF and the World Bank's annual estimates. It doesn't seem the world is in the mood to go along with exports-even after this, Indian exporters have shown resilience and grown despite the setbacks in global exports,' the Finance Minister pointed out. She also praised the exporters for the tech-infused high-tech products that are being exported, which was not the case before and finding newer markets in a world where consumption is coming down in various countries such as those in Europe. Sitharaman highlighted that despite recession-like conditions in Europe, 'our exporters have creatively rerouted and found newer markets'. 'India is not just exporting bulk commodities but well-engineered, high-standard products,' she underlined. About the ongoing talks to finalise free trade agreements, Sitharaman said, these pacts will change the dynamics of the country's exports in the future. 'Intense trade negotiations are going on with the US and the European Union and should come to a conclusion soon. Emphasis is being made on getting more free trade agreements getting signed,' she said. She assured the exporters of the steadfast support of the Indian government. In the context, she highlighted five key measures undertaken by the government to boost exports. These include upgradation of transport and logistics infrastructure, targeted support to MSMEs and technological assistance extended to research institutions, including IITs and IIMs. Besides, the government launched the International Trade Finance Services platform at GIFT City and rolled out Production Linked Incentive (PLI) schemes, which have led to a jump in the production of electronic products, including smartphones. The Finance Minister also refuted global criticism on India charging high tariffs on its imports by pointing out that as many as 7 tariff rates were removed in this year's budget. Finance Minister Nirmala Sitharaman on Monday directed the Central Board of Direct Taxes (CBDT) to significantly reduce pendency in grievance redressal mechanisms such as CPGRAMS and e-Nivaran pertaining to the department. She also emphasised that prompt and time-bound disposal of taxpayer grievances is essential for ensuring responsive governance. Chairing the Conclave of Principal Chief Commissioners of Income-tax here, the minister was apprised about key performance indicators. Out of the total 160,229 grievances (CPGRAMS and E-nivaran) for FY 2025-26, 1,31,844 grievances were resolved (up to 17.06.2025), leading to 82.28 per cent disposal. Refunds issued for FY 2025-26 (as on June 19) saw 58.04 per cent annual growth, showing better taxpayer services Rs23,376 crore refunds issued on account of Order Giving Effects and Rs10,496 crore refunds issued on rectification in FY2025-26. Out of the pending 5.77 lakh appeals, over 2.25 lakh appeals are targeted for completion in FY 2025-26, addressing over Rs10 lakh crore of disputed demand, the minister was informed during the meeting. Around 4,605 cases were withdrawn after the monetary limits were raised in 2024, and in around 3,120 cases, appeals were not filed as the monetary limits for filing appeals were increased. Sitharaman noted that CBDT has undertaken several significant reforms in recent years, particularly in faceless assessment, e-verification system, tax exemptions & changes in slab rates, and digital service delivery. She called for further consolidation of these reforms to deliver tangible benefits to taxpayers. The Finance Minister directed all Principal Chief Commissioners of Income Tax to prioritise and accelerate the disposal of disputed tax demands that are currently pending before the faceless appellate authorities. This is aimed at reducing litigation backlog and ensuring timely resolution, thereby enhancing taxpayer trust in the system. She instructed that all departmental appeals falling below the revised monetary thresholds as notified in recent policy changes be identified and withdrawn within a period of three months. Reuters
Time of India
a day ago
- Business
- Time of India
Indian exporters ‘swimming against the tide and succeeding' amidst global slowdown, says Sitharaman
Nirmala Sitharaman lauded Indian exporters' resilience at the Exim Bank Trade Conclave 2025, highlighting their growth amidst global challenges. Exports reached a record $825 billion, surpassing global growth rates. Ongoing trade negotiations with the EU, UK, and US are nearing completion, alongside government support measures boosting manufacturing and infrastructure. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Upgradation of transport and logistics infrastructure Targeted support to MSMEs Technological assistance extended to research institutions including IITs and IIMs International Trade Finance Services platform at GIFT City Production Linked Incentive (PLI) schemes 'India not the tariff king,' says FM Tired of too many ads? Remove Ads On trade deals: Talks with UK, EU, US nearing endgame Union Finance Minister Nirmala Sitharaman on Tuesday praised the resilience of Indian exporters , saying they had outperformed global trends despite multiple challenges such as geopolitical conflicts and sluggish international at the Exim Bank Trade Conclave 2025 in New Delhi, she said exporters in India were "literally swimming against the tides and succeeding in it."'In the last few years, global trade and growth have suffered; global growth has not seen an uptick, according to WTO, IMF and World Bank's annual estimates,' Sitharaman said.'It doesn't seem the world is in the mood to go along with exports—even after this, Indian exporters have shown resilience and grown despite the setbacks in global exports," she FM credited Indian exporters with three distinct achievements: 'One, they are growing and growing significantly. Two, they're not just growing as earlier but today they're finding tech-infused high-tech products that are being exported. And three, they're finding newer markets in a world where countries' consumptions have come down—we can take Europe for instance.'Sitharaman noted that despite recession-like conditions in Europe, 'our exporters have creatively rerouted and found newer markets.' India, she said, is 'not just bulk exporting commodities but well-engineered, high-standard products.'India's total exports, she said, reached an all-time high of $825 billion, registering 6.3% growth, compared to the global export growth of just 4%.'You have the support of the Indian government,' she assured the business community, adding that exporters had adapted each year despite successive global shocks—first Covid-19, then the Ukraine war, and most recently the conflict in listed five key steps taken by the government to help exporters:She added that the World Investment Report had placed India in an improved position despite global global criticism on India's tariff regime , Sitharaman said, 'For those who may believe the commentary made in the US—that India may be the tariff king—no. I want two things to be remembered.''Given our system of things, we seek parliamentary approval to set tariff rates. But our effective rates of tariff are far lower,' she said. 'Our procedures have given us a not-so-desirable picture of what our tariff rates were. But it should be noted that 7 tariff rates were removed in this year's budget.'She added: 'We have reduced tariffs to just 8 slabs, including the zero-tariff slab.'Speaking about India's ongoing trade negotiations , Sitharaman said, 'Negotiations with the EU, UK and US are intensely going on and should come to a conclusion soon.'She also highlighted India's growing stature in global manufacturing, noting that 'Apple's iPhone manufacturers in India have crossed 20% domestic value addition.'
