India's Immediate Focus: US Tariff Rollback to Boost Export Competitiveness

The Global Trade Research Initiative emphasizes India's need to prioritize obtaining a US tariff rollback, reducing the tariff burden on Indian exports from 50% to 25%. Such a move would benefit labor-intensive sectors and boost export competitiveness, as discussed in a Board of Trade meeting chaired by the Commerce and Industry Minister.

The Global Trade Research Initiative has highlighted the urgent need for India to secure a rollback of US tariffs, emphasizing that this should be an immediate priority for the country. In its latest report, GTRI argues that removing the oil-related duty would reduce the effective US tariff burden on Indian goods from 50% to 25%. This measure would provide significant relief to labor-intensive sectors, such as textiles, leather, gems and jewelry, and pharmaceuticals.

GTRI has called on members of the Board of Trade (BoT) to prioritize two critical issues in their upcoming meeting: launching the Export Promotion Mission and persuading the US to remove the Oil Tariff. The BoT meeting, chaired by the Commerce and Industry Minister, aims to recommend strategies to enhance export growth. GTRI stresses that achieving this tariff reduction is crucial for restoring India's export competitiveness and ensuring equitable future trade negotiations with the US.

Furthermore, GTRI advises that India should urge the US to eliminate the additional 25% 'Russian oil' tariff before entering any new trade agreements. President Trump has acknowledged that India has significantly reduced oil purchases from sanctioned Russian companies, the basis for the surcharge. With this condition met, GTRI insists that a tariff rollback must remain a top priority for India. Removing this burden could slash the US tariff on Indian goods to 25%, benefiting crucial sectors. In parallel, GTRI recommends the government expedite components of the Export Promotion Mission to support exporters amid global economic stress.

(With inputs from agencies.)