India US trade: Following Prime Minister Narendra Modi’s recent State visit, India has made the decision to eliminate additional duties on various US products, including chickpeas, lentils, and apples. These duties were initially imposed in 2019 as a response to the US imposing higher tariffs on specific steel and aluminum products, according to government sources.
India and US Resolving Trade Disputes
India and the US have reached an agreement to settle six disputes at the World Trade Organization (WTO) and remove retaliatory tariffs on certain US products. In 2018, the US imposed a 25% import duty on steel products and a 10% import duty on certain aluminum products for national security reasons. In retaliation, India imposed customs duties on 28 American products in June 2019.
Once India officially notifies the removal of additional duties, the tariffs on these eight US-origin products will revert to the current most-favored-nation (MFN) rate within 90 days, as stated by one of the sources familiar with the matter.
List of Products with Removed Duties
As part of the agreement, India will eliminate additional duties on chickpeas (10%), lentils (20%), fresh or dried almonds (Rs 7 per kg), shelled almonds (Rs 20 per kg), walnuts (20%), fresh apples (20%), boric acid (20%), and Diagnostic Regents (20%), according to the sources.
These duties were initially increased on 28 US products in 2019 in response to the US decision to raise duties on specific steel and aluminum products. US lawmakers and industry leaders have welcomed the announcement of the agreement to end these duties with India.
US as India’s Largest Trading Partner
The US is India’s largest trading partner. In the year 2022-23, bilateral goods trade increased to USD 128.8 billion, compared to USD 119.5 billion in 2021-22. “India has announced it is lifting retaliatory tariffs that all but shut down the Indian market for Washington’s more than 1,400 apple growers and now our growers will once again have access to this USD 120 million market,” stated Cantwell, a Democratic Party lawmaker, in a press release. India was the second largest export market for apples from Washington.
(With PTI inputs)
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
