India Considers Tariff Cuts to Boost Local Manufacturing in Face of Global Trade Negotiations

An Indian parliamentary committee has recommended reducing tariffs on raw material imports to support local manufacturers amid upcoming trade negotiations. The proposal aims to balance tariffs on raw materials and finished goods, fostering fair competition. It's part of India's strategic move to strengthen its manufacturing sector before trade deals with major economies.

An Indian parliamentary committee has issued a recommendation calling for the reduction of tariffs on raw material imports. This move is designed to bolster local manufacturers who face increasing pressure as India prepares for trade negotiations with the United States.

The committee's report suggests aligning tariffs on imported raw materials with the lower rates currently applied to finished goods imports. This strategy is intended to create a level playing field for domestic manufacturers, providing them more competitiveness against international products.

Additionally, the committee has called for a comprehensive review of all free trade agreements to pinpoint sectors where tariff imbalances exist. This would involve addressing instances where raw material tariffs are higher than those on finished goods, aiming to support local production and resolve ongoing trade disputes.

(With inputs from agencies.)