India Grants Zero-Duty Access to Harley-Davidson: A Boost for Iconic American Bikes

India will allow zero-duty access for US motorcycle makers on bikes with engine capacities between 800-1,600 cc, benefiting Harley-Davidson. An interim trade agreement between the US and India anticipates signing by mid-March. The move addresses longstanding US concerns over high Indian tariffs on Harley-Davidson motorcycles.

India is set to grant zero-duty access to US motorcycle manufacturers for bikes with engine capacities ranging from 800 to 1,600 cc. This interim trade agreement aims to benefit iconic American brand Harley-Davidson, which has long grappled with high import duties impacting its Indian market presence.

Previously, India had reduced import duties on bikes up to 1,600 cc to 40% from 50% and further slashed duties on motorcycles exceeding 1,600 cc from 50% to 30%. A joint statement by India and the US highlights the anticipated signing of this trade pact by mid-March, with duty eliminations set to commence upon the agreement's implementation.

Despite being a niche market for high-end bikes, the move holds significant importance as the US has consistently expressed concerns about India's hefty import tariffs on Harley-Davidson. Additionally, under this agreement, India will afford duty concessions on certain US car imports, while the US will reciprocate by reducing tariffs on specific Indian auto parts.