Daijiworld Media Network – New Delhi
New Delhi, Feb 25: As the United States prepares to impose reciprocal tariffs on trading partners by April 2, the Indian government has set up a high-level committee to review potential tariff relief on US imports. The panel, formed under the Union Commerce Ministry, is expected to submit its findings by March 15 to both the Ministry of Commerce and the Ministry of Finance.
Sources familiar with the matter indicate that the review focuses on tariffs ranging across multiple brackets, including 15–20%, 50–70%, and 70–80%. The committee is examining whether adjustments can be made based on the "8-digit code" system used to classify specific products for customs purposes. The primary goal is to assess the scope for possible tariff reductions and recommend strategic adjustments that align with India’s broader trade objectives.
Once the panel submits its recommendations, the final decision will require approval from the Prime Minister’s Office before implementation. India has already demonstrated responsiveness in addressing concerns over high tariffs on foreign goods, and this review will play a key role in shaping its approach to the US's proposed tariff measures.
In the Union Budget 2025-26, India took steps to ease import duties, including reducing tariffs on bourbon whisky from 150% to 100%, as well as lowering duties on items such as fish hydrolysate, scrap materials, satellite equipment, ethernet switches, and high-end motorcycles.
Despite the US's tariff plans, India is unlikely to experience significant short-term economic consequences in key sectors. The country does not serve as a major semiconductor supplier to the US, minimizing any direct impact on chip exports. Similarly, India’s domestic automotive industry, which primarily caters to the growing local market, is expected to remain unaffected by US trade measures.
Additionally, the steel sector is unlikely to feel the pinch, as only 2% of India’s total finished steel exports in the first nine months of the current fiscal year were destined for the US, according to a report by Crisil Intelligence.
With trade tensions escalating globally, the findings of the high-level review panel will be instrumental in determining India's strategy in navigating the shifting landscape of international tariffs.