U.S. tariffs: Opposition slams Centre s  inaction , Pg 10

U.S. tariffs: Opposition slams Centre s  inaction , Pg 10

Concerns over India s Policy Vacuum

• Opposition leaders questioned India s lack of official response to the U.S. President s announcement of reciprocal tariffs.

• No statement in Parliament, no policy clarity, and no consultation with Opposition flagged by P. Chidambaram.

Government s Clarification on Tariffs

• Finance Minister clarified recent reductions in customs duties (basic/intermediary goods) were not a response to U.S. tariff threats.

• Duty cuts are part of a long-term strategy (since 2023) aimed at boosting domestic manufacturing under Atmanirbhar Bharat.

Support to Domestic Industries

• 84 tariff lines now exempted from social welfare surcharge.

• 35 new items for EV battery manufacturing and 28 mobile battery inputs added to exempted goods list.

• 12 critical minerals like cobalt, zinc, and lithium scrap exempted from customs duty in Budget 2024.

Export & Competitiveness Strategy

• Policy aims to:

• Promote value addition in manufacturing.

• Enable EV production and mobile tech growth.

• Make Indian exports globally competitive by reducing input costs.

Analysis & Way Forward

• While opposition demands more transparency and debate, government s focus on long-term industrial policy may reduce tariff shocks.

• Moving forward, India must maintain trade policy flexibility while securing interests of domestic sectors against retaliatory global tariffs.

Mains Mock Question:

"Examine the impact of unilateral tariff hikes by major economies on India s trade policy. Discuss the role of duty rationalization in promoting domestic manufacturing."