US Industry Lobbies Press India on Tariffs and Trade Barriers
Why in the news
American business groups lobbied Washington to push India for lower tariffs and fewer regulatory hurdles, just before the US Trade Representative (USTR) reviewed unfair trade practices and unveiled reciprocal tariffs.
Demands by sector
| Sector | Ask |
|---|---|
| Pharma and healthcare (USCC) | Lower import duties on drugs; include pharma manufacturing in future trade deals; relax price controls on patented medicines and devices like stents and knee implants; allow import of refurbished equipment such as CT scanners and surgical systems |
| Consumer goods | Cut the 28% GST on non-alcoholic aerated drinks, treated as sin or demerit goods |
| Automobiles (Harley-Davidson) | Quick rationalisation of tariffs |
| Finance and digital (CSI) | End local content rules, preferential treatment of UPI and RuPay, and data localisation |
Motorcycle duty comparison
- India: 100%
- EU: 68%
- Thailand: 60%
- Brazil: 18%
Other recommendations
- Competitive neutrality for state-owned enterprises (SOEs) and opening more SOE segments in any pact.
- A public procurement agreement giving both nations access to public-sector contracts.
Significance
- Shows rising trade tension and reciprocity issues between the US and India.
- These lobbies could influence bilateral trade negotiations and the tone of India-US economic ties.
Exam angle
- Related terms: USTR, reciprocal tariffs, competitive neutrality, data localisation, UPI, RuPay.
- GST on aerated drinks: 28%.