World Bank Urges India to Slash Import Tariffs for Economic Growth

A World Bank report highlights the need for India to reduce import tariffs and regulatory hurdles to boost foreign investment. The report points out that high tariffs on intermediate and capital goods, along with significant non-tariff barriers, raise trade costs and limit import-export openness.

In a bid to bolster its economy and attract foreign investment, India needs to slash import tariffs and implement regulatory changes, according to a World Bank report released on Friday. The report identifies high tariffs, particularly on intermediate and capital goods, as significant barriers that increase trade costs and restrict greater openness in imports and exports.

Additionally, the World Bank recommends that India simplify its customs procedures, ensure policy predictability, and cut through bureaucratic red tape. U.S. President Donald Trump has frequently criticized India's tariff policies, spotlighting them as obstacles for U.S. businesses, which India has partially addressed by reducing tariffs on specific luxury items.

In a broader context, the Trump administration has proposed reciprocal tariffs on countries imposing duties on U.S. goods, with Trump announcing imminent tariffs of 25% on Mexican and Canadian goods and an additional 10% duty on Chinese imports, slated to take effect next week.

(With inputs from agencies.)