North India Statesman
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Mumbai: To persuade the newly appointed US President Donald Trump to show positive attitude towards India, the Indian government is considering taking steps like trade agreements with him, import of more goods and reduction in tariffs. Apart from reducing the number of customs duty rates in the next budget, practicality is also being considered.
In the last financial year, India’s trade with America was 35.30 billion dollars. Any austerity measures by Donald Trump could reduce this total. Government sources said India is also considering retaliatory measures against the US move to maintain trade balance.
America was India’s largest trading partner in the last financial year.
India can increase the import of steel, whiskey and crude oil from America, not only this, reducing the tariff on some products is also being considered.
This is being considered as part of avoiding any confrontation with Trump. Apart from this, India wants to take advantage of any possible trade war between America and China.
A report says that India is ready to signal that it does not want any conflict with Trump by taking back 18,000 Indians living illegally in America.
America has announced to impose 25% tariff on Canada and Mexico and 10% tariff on China. If BRICS countries issue their own special currency, Trump has warned of adopting a strict attitude against these countries also.
Meanwhile, Finance Minister Nirmala Sitharaman is expected to implement the cut in customs duty levels in the budget for the next financial year to be presented on February 1. Currently there are more than 40 levels of customs duties on various imported goods.
Government sources said the government wants to make it viable by reducing customs duty levels, but due to the provisions of free trade agreements (FTAs) with various countries, the government is not in a position to give more concessions.
The fee rate fixed under FTA cannot be changed. However, the customs duty rate structure is under review. A slight reduction in the tax level can be made, but this reduction will depend more on the volume of imports of the product.
