Automobiles on government’s list for trade talks with US

NEW DELHI: Automobiles are among the many list of things recognized by the commerce division for consultations with different departments and ministries forward of negotiations for the proposed bilateral trade settlement with the US – a sign that govt is searching for suggestions for a doable obligation minimize for bikes and vehicles corresponding to Harley Davidson and Tesla.
Sources instructed TOI that the commerce division is wanting on the list of sectors the place it could actually provide obligation cuts following consultations and auto figures prominently.
The discussions are being held on the stage of commerce secretary Sunil Barthwal to determine India’s offensive pursuits, which means areas the place it will search a discount in import obligation from the US, in addition to its defensive pursuits – the place it could have to supply concessions.
Ministries and departments, in flip, have been instructed to come back again with suggestions from business so {that a} remaining view on the sector will be taken in a complete method.
Given Trump’s outbursts in current weeks – in addition to the transfer to impose as much as 25% tariffs on auto imports into US – vehicles and bikes are seen as an space of defensive curiosity for India, particularly as Americans see metal and vehicles amongst sectors the place the world’s largest economic system ought to regain its dominant place that it has needed to concede to China lately.
Trump has repeatedly flagged excessive tariffs in India as a priority, together with on Tuesday, and stated that firms corresponding to Harley Davidson and Tesla are left with little selection however to arrange factories in India.
This is regardless of govt slashing import obligation on Harley Davidson and different bikes within the Budget, whereas reducing the essential customs obligation on vehicles to 70%, though the efficient levy, together with cess, has been retained at 110%.
For Trump, the opposite space of curiosity is simpler entry for American agricultural items, corresponding to pecan nuts and fruits, regardless of cornering a dominant share of almonds and pistachios.
For India, sectors corresponding to textiles and footwear, as additionally a few of its farm merchandise, will probably be areas of offensive curiosity with non-tariff limitations too anticipated to determine prominently within the discussions as the 2 sides search to develop trade from lower than $200 billion to $500 billion by 2030.