India’s Import Tariffs: High Duties and US Reciprocal Tariff Threat
Why in the news
India’s import duties are among the world’s highest, drawing US scrutiny as Washington threatens reciprocal tariffs.
Tariff comparison, 2023
| Country or bloc | Average duty |
|---|---|
| India | About 17% |
| Brazil | 11% |
| China and South Africa | 7% |
| Russia | 6.6% |
| European Union | 5% |
| United States | 3.3% |
Key facts
- Farm goods carry very high tariffs, justified by low agricultural investment (about 6% of total investment).
- Above 30%: dairy, beverages, tobacco. Cuts since 2018: transport equipment, cotton, textiles. Hikes: electrical machinery, leather and footwear, industrial goods.
- India lowered one tariff (bourbon whiskey) from 150% to 100% after US criticism.
Concerns
- Reciprocal tariffs could push India to lower farm tariffs, which it has refused in FTAs.
- The US will likely seek wider access for its farm goods; India resists on sensitive items like cereals but may have to concede in talks.
Exam angle
- India’s 2023 average import duty: about 17%.
- Term: reciprocal tariffs.