Tariff Cuts in India’s Budget Signal Positive Shift for US Exports: GTRI

ENA Sectors 2025-02-03 17:21:15 New Delhi, Feb 3 (KNN) The recent reductions in customs duties announced in Indias Budget, particularly on products like motorcycles and synthetic flavouring essences, could significantly benefit American exports, according to the Global Trade Research Initiative (GTRI). Despite previous criticism from the Trump administration, which dubbed India the biggest tariff abuser, the GTRI noted that Indias Budget introduces important tariff cuts across various sectors. This move could signal Indias intention to ease trade barriers, even as the global trade environment remains challenging. Among the key changes, India lowered the customs duty on fish hydrolysate for aquatic feed production, reducing it from 15 per cent to 5 per cent. This directly impacts US exports, which totalled USD 35 million in 2023-24. In the automobile sector, India cut tariffs on motorcycles with engine capacities below 1,600cc from 50 per cent to 40 per cent, and those above 1,600cc from 50 per cent to 30 per cent. This change could expand market access for American motorcycle manufacturers, who exported USD 3 million worth of motorcycles to India in FY24. The GTRI also highlighted a reduction in tariffs on ethernet switches from 20 per cent to 10 per cent, benefiting US exporters, who sent USD 653.4 million worth of these products to India in the last fiscal year. The cut on synthetic flavouring essences, from a steep 100 per cent to 20 per cent, also presents an opportunity for American businesses, as the US exported USD 21 million worth of these essences to India in FY24. Additionally, India has made a notable policy shift by reducing tariffs on ground installations for satellites to zero, benefiting US space exports valued at USD 92 million in FY23, although trade activity in this sector has recently declined sharply. The Budget also proposes the elimination of tariffs on specific waste and scrap items, a sector in which the US exported USD 2.5 billion to India in 2023-24. As Indias largest trading partner during 2021-24, the US stands to gain significantly from these tariff reductions. GTRIs founder, Ajay Srivastava, emphasised that this shift could signal a more trade-friendly approach by India, potentially boosting US exports across numerous sectors. (KNN Bureau) 40930 https://knnindia.co.in/news/newsdetails/sectors/tariff-cuts-in-indias-budget-signal-positive-shift-for-us-exports-gtri 2025-02-03 17:21:15 knnindia.co.in Tariff Cuts in India’s Budget Signal Positive Shift for US Exports: GTRI