DPIIT Secretary encourages Indian industries to prepare for lower tariffs
Rajesh Kumar Singh, the Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), has encouraged India's domestic industry to anticipate a lower tariff regime in the future. Speaking at the Confederation of Indian Industry's Annual Business Summit today, Singh revealed that India is currently negotiating key foreign trade agreements (FTAs). He suggested that during these discussions, the government may adopt a "little less conservative" stance on tariffs.
Trade negotiations underway with multiple nations
Singh disclosed that the Centre is currently in talks for FTAs with several nations and groupings, including the UK, European Union (EU), and Peru. He also assured companies that a lower tariff regime would be accompanied by efforts to rectify any inversions in the existing tax regime. Singh stated that domestic businesses have "every right to expect that any inversions in our tax regime would be corrected."
Highlighting new electric vehicle policy
Singh also discussed the electric vehicle (EV) policy introduced in March, stating that tariff adjustments were used to elicit performance commitments from manufacturers without resorting to expenditure. He anticipates this EV policy will attract investments from many companies, not just one. The new EV policy significantly reduced import taxes on some models from 100% to 15%, provided manufacturers invest a minimum of $500 million and establish a factory.
