Latest news with #TradeConclave2025
Hindustan Times
3 hours ago
- Business
- Hindustan Times
FM rebuts US claim of high tariffs on imports
New Delhi : Union finance minister Nirmala Sitharaman on Tuesday refuted United States president Donald Trump's charge that India is the 'tariff king' in imposing high duties on American goods, contending that effective levies in India are far lower than the notified rates. Union finance minister Nirmala Sitharaman, (File photo) (PIB) Continuing reforms to encourage domestic value-addition, India on February 1 announced removing seven tariff rates on industrial goods in the FY26 budget, leaving only eight rates in place that include the zero duty, she said at the Trade Conclave 2025 organised by the Exim Bank in New Delhi. Referring to the Union budget 2025-26, she said it rationalised customs tariff structure for industrial goods and removed seven tariff rates. Without any specific reference to the US president, she said: 'For all of us, or those of us who still believe in the commentary which was made in the US that India may be the tariff King. No, I want two things to be remembered. Given as system of things we seek Parliamentary approval for deciding on the tariff rate. You obtain from the Parliament the permission to go up to a certain level, but effectively, you are at a far lower level.' 'Effective rate is at a far lower level. But what gets published in the gazette would be that level for which you obtain permission from the Parliament. And it is that level which appears everywhere…,' she said, explaining that the levies notified in the gazette are the upper limit while effective duties are often less than the cap. Articulating reforms in customs duty structure in her budget speech on February 1, Sitharaman said: 'As a part of comprehensive review of Customs rate structure announced in July 2024 Budget, I propose to: (i) remove seven tariff rates. This is over and above the seven tariff rates removed in the 2023-24 budget. After this, there will be only eight remaining tariff rates including 'zero' rate.' An official who did not wish to be named said customs duty rationalisation is one of the key reforms of the government. 'Average customs duty in India has come down to 10.66%, which is closer to the rates prevailing in Asian countries. So, the narrative that India's customs duties are very high is wrong. In fact, most of the American goods enter India within the effective customs duty band of 0-10%,' he said. 'President Trump's remark about India is not new. He used the tag of 'tariff king' for India even in his first term. Since then, India undertook several customs reforms and even reduced tariffs on specific items of American interests such as automobiles, pharmaceuticals and Bourbon whisky. Seems, he is fixated in his opinion,' the official mentioned above said. According to a Hindustan Times report from Washington, published on October 2, 2018, Trump made his comments referring to India imposing 100% duty on iconic motorcycle, Harley-Davidson. Since then, import duties on bikes up to 1,600 cc and above 1,600 cc have been slashed to 40% and 30%, respectively. Union finance minister's comments came at a time when India and the US are negotiating an early harvest deal within a comprehensive Bilateral Trade Agreement (BTA) and talks are mainly focused on reducing tariff and non-tariff barriers for mutual benefit.
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Business Standard
20 hours ago
- Business
- Business Standard
FTAs with US, EU soon; exporters to get full govt backing: Sitharaman
Union Finance Minister Nirmala Sitharaman on Tuesday said that trade pacts with the United States and the European Union are likely to be concluded soon. She assured exporters of every possible government support amid the challenging global environment. 'Intense trade negotiations are going on with the US and the European Union and should come to a conclusion sooner. Emphasis is being made on getting more free trade agreements signed,' Sitharaman said at Exim Bank's Trade Conclave 2025 in New Delhi. The finance minister pointed out that India's total exports have touched an all-time high of $825 billion—a 6 per cent growth over the previous year—despite a challenging global environment. 'This is a significant leap of $466 billion over 2013–14,' she added. She lauded the grit and perseverance of Indian exporters, acknowledging their continued success despite global headwinds. 'Despite that, I appreciate the Indian exporters putting in that kind of an effort, that they are still growing and are finding real success. And therefore, on this particular occasion, I take this opportunity to congratulate all those exporters who have received their awards. But for those who have not received their awards, you're really swimming against the current and succeeding in it.' She further assured exporters of continued government backing: 'So all support from the Government of India is all that I can assure you, because we need to do that more.' Sitharaman further highlighted that global trade was slipping, with institutions such as the Organisation for Economic Co-operation and Development (OECD) and the World Bank projecting a decline. 'Global growth in trade has suffered,' she said, adding that Indian exporters were 'swimming against the current' despite the odds. Her comments come at a time when India is looking to deepen its export base while navigating an uncertain global economic climate brought about by US President Donald Trump's tariffs and broader geopolitical uncertainties. Sitharaman reiterated the government's commitment to supporting exporters through improved access to finance and structural reforms. 'The government will give all support to exporters. Every year we have had serious challenges in global trade,' she said. She pointed out that despite one challenge or another each year, Indian exporters have continued to perform well. 'From COVID in 2020 to the Russia–Ukraine war in 2022, and disturbances due to Hamas in 2023, and the recent tariff war—we have had serious challenges every year to global trade,' she said, highlighting that Indian exporters have upped their game by foraying into new markets and exporting high-tech, value-added products. 'While global exports grew at 4 per cent, India's exporters managed a 6.3 per cent growth,' she added. 'Tech-infused high-end products are getting exported today. India is not just exporting bulk raw goods or commodities. Today, high-standard, well-engineered products are being exported. Indian exporters have also been finding new markets,' she said. Sitharaman noted that the government has taken five major steps to support exporters. 'The first one is transport and logistics upgrades, which improve supply chain efficiency. Secondly, the government has provided targeted support to MSMEs. Third of the five is trade finance access,' she said.
