India unlikely to go in for across-the-board tariff cuts, Pg 13

Tariff Negotiations with the U.S.

• India unlikely to opt for general tariff cuts.
• May pursue reciprocal tariffs and ease non-tariff barriers (NTBs) instead.
• A U.S. tariff hike (15.7% from 2.7%) on Indian products may trigger tit-for-tat responses.

Trade Imbalance & Tariff Differential

• U.S. exports to India = 18% of Indian merchandise exports; only 1.6% of U.S. imports.
• Agricultural exports most affected: India levies 40%, U.S. levies just 2.9%.

Indias Strategic Consideration

• Economists suggest India should avoid uniform cuts.
• Barclays estimates Indias average tariff is 2.3% higher than U.S. tariffs on agri goods.

Analysis & Way Forward

• India may continue selective liberalization, aligned with trade diplomacy.
• Trade policy needs balancing domestic industry protection with global competitiveness.

Mains Mock Question:

"Critically analyse Indias current approach to tariff liberalisation in bilateral trade negotiations. Should India adopt a uniform tariff reduction policy?"