India needs tariffs to deal with unfair trade practices: Piyush Goyal

Commerce Minister Piyush Goyal on Monday said India has significant flexibility to engage bilaterally with developed nations that follow fair trade practices, but must use tariffs to guard against unfair trade, such as predatory pricing and hidden subsidies.

Commerce Minister Piyush Goyal on Monday said India’s applied tariffs on the U.S. average just 7–8%, calling them moderate and necessary to guard against unfair trade practices. In contrast, the U.S. recently imposed a 26% reciprocal tariff on India. Goyal declined to share details of the ongoing negotiations but emphasized that India is open to […]

Developed countries are easing their stance on including non-trade issues like sustainability and environment in free trade agreement negotiations with India. This shift may help ongoing trade talks with the EU and UK. India prefers discussing non-trade issues at international platforms specifically meant for them. The EU’s trade barriers like the Carbon Border Adjustment Mechanism […]

By initiating a tariff war, the US has caused disruptions resulting in India gaining a significant portion of its dairy export market. Numerous countries in India’s vicinity are likely to raise import duties on US products in retaliation, positioning India to capitalize on the opportunity to access newer export markets.

Developed nations are now showing flexibility in free trade agreement (FTA) talks by de-emphasizing non-trade issues like climate and sustainability. Instead, they’re focusing on trade first, suggesting other concerns can be addressed later. India supports separating such issues, preferring platforms like the ILO and UNFCCC.

Indian customs authorities are speeding up US-bound shipments to beat the April 9 deadline for a 26% reciprocal tariff announced by the Trump administration. Exporters are fast-tracking consignments to minimize costs due to new tariffs. Authorities aim for smooth clearances, especially for perishable items, as goods exports growth is crucial for future fiscal targets.

The Environment Ministry’s panel cleared the import of genetically modified alfalfa hay from the US, but final approval from India’s Agriculture Ministry is pending. The US has raised concerns during trade talks, and India is expected to address these issues soon.

US President Trump’s tariffs are prompting Chinese electronics companies like Haier, Lenovo, and Hisense to explore exporting from Indian factories to reduce costs. Companies are urging India’s government to ease FDI rules for smoother investment processes. Increased US-bound manufacturing in India could benefit from lower tariffs, potentially boosting trade relations between the two countries.

India’s goods and services exports are estimated to surpass USD 800 billion in 2024-25, despite merchandise shipments remaining stagnant. Positive growth in merchandise exports is expected in 2025-26. The service exports saw a significant increase, reaching USD 354.90 billion during April-February 2024-25.

India emerges stronger in the US-India reciprocal tariffs scenario, negotiating favorable trade agreements and protecting domestic industries against dumping. The country is leveraging its bilateral talks, with New Delhi exploring measures to safeguard sensitive sectors and support impacted exporters amid escalating trade tensions.