In the midst of current trade negotiations with the United States and the imminent threat of reciprocal rates, India reduced its average industrial rate to 10.66%, the Ministry of Commerce informed Lok Sabha on Tuesday. “According to WTO 2023, India’s simple average rate rate is 17%. The industrial goods rate was 13.5% in 2023 … post-syndical budget 2025-26, the simple average industrial rate was reduced to 10.66,” said Jitin Prasada, Minister of State for Trade and Industry, Chamber in response to an uninstated question.
“The two countries would focus on increasing market access, reducing pricing and non -tariff barriers, improving the integration of the supply chain and resolving bilateral commercial problems,” added Prasada on Tuesday.
Development occurred in the midst of information that India is considering one of the largest prices reductions in recent years, which has potentially removed certain prices. Bizer of the reciprocal prices of US President Donald Trump who threaten Indian exports, New Delhi plans to reduce prices on more than half of US imports worth $ 23 billion in the initial phase of commercial discussions, Reuters reported.
The central government aims to reduce the impact of commercial prices, which threaten to allocate 87% of India exports to the United States, estimated at $ 66 billion, the report.
Trump’s reciprocal rates should be implemented from April 2.
In discussions with the United States, India would have expressed its desire to reduce prices on 55% of the American goods it currently imports, which currently support prices ranging from 5% to 30%.
This proposal depends on India which obtains concessions on the reciprocal rates of the United States. The dialogue is part of the continuous efforts to finalize a trade agreement aimed at defusing the tariff dead end between the two countries.
India is also considering wider tariff reforms to uniformly reduce barriers, but these discussions remain in preliminary stages and may not be immediately discussed in talks with the United States.
The United States maintains a trade deficit of $ 45.6 billion with India, while its average weighted tariff depending on trade amounts to approximately 2.2%, compared to 12% of India. Recent talks, initiated during the visit of Prime Minister Narendra Modi in the United States in February, seek to approach these disparities. Price negotiations are among the wider discussions led by the American deputy representative Brendan Lynch, currently visiting India with a delegation for new talks.
Meanwhile, according to reports, the White House is considering a softer approach because industries such as cars, pharmaceutical products and semiconductors are unlikely to cope with immediate samples. India has not finalized the potential reductions in prices, those responsible indicating that options such as sectoral adjustments and product negotiations by product could be explored instead of generalized reductions.
