Modi government mulling tariff cuts on US imports worth $23B
What's the story
The Indian government is considering a major cut in tariffs on over half of its imports from the United States, worth $23 billion.
The move is part of a continuing trade deal between the two countries, aimed at avoiding reciprocal tariffs that could hurt India's exports.
The proposed rate cuts would be one of the biggest in recent years.
Impact mitigation
Tariff cuts aimed at mitigating impact of US tariffs
The Indian government is working actively to lessen the impact of reciprocal tariffs proposed by US President Donald Trump, which will come into effect on April 2.
The potential new tariffs have already disrupted markets and raised concerns among several nations, including some of the US's Western allies.
An internal analysis by India indicates such reciprocal tariffs could impact 87% of its total $66 billion exports to the US.
Negotiation details
Proposed tariff reductions and ongoing negotiations
India is willing to cut tariffs on 55% of US goods it imports, which currently attract tariffs between 5% and 30%.
Some of these tariffs could be drastically reduced or even completely eliminated. However, the final call on this proposal is yet to be taken.
Other options being considered include sector-specific tariff cuts and product-by-product negotiations instead of a blanket tariff reduction.
Trade discussions
US delegation to visit India for trade talks
A US delegation led by Brendan Lynch, Assistant US Trade Representative for South and Central Asia, is expected to visit India for the trade talks.
The Indian government hopes to finalize a deal before the US reciprocal tariffs come into effect.
The US and India have a long history of trade negotiations. According to data from World Trade Organization, average US trade-weighted tariff is at 2.2%, while India's is much higher at 12%.