India no tariff king: Nirmala amid trade talks with US
In the midst of ongoing trade talks with the US, India on Tuesday signalled firmness regarding the national position around contentious issues of domestic tariff rates and the American urge for lower duties for their farm products.
While Finance Minister Nirmala Sitharaman addressed US President Donald Trump’s repeated criticism of India’s tariff regime and claims of India being a “very big tariff abuser", Union Agriculture Minister Shivraj Singh Chouhan said the interests of domestic farmers would be safeguarded amid the ongoing trade negotiations.
“For those who still believe in the commentary which was made in the US that India may be the tariff king, I want two things to be remembered — given our system, we seek parliamentary approval for deciding on the tariff rates. You obtain from Parliament the permission to go up to a certain level. But the effective tariff rate is at a far lower level. However, what gets published would be the level for which you have obtained parliamentary approval. People then tend to think that that is the rate at which we are imposing tariffs," Sitharaman said, speaking at Exim Bank Trade Conclave 2025.
The FM said that “for those who think there is still a tariff story in India, I want it to be clear that there are only eight (tariff rates), including the zero rate".
After tariff rate reductions in two consecutive budgets, India’s average customs duty rate has fallen to 10.66 per cent from 11.65 per cent and veered closer to levels in Southeast Asian countries.
The FM, noting that despite global uncertainties, Indian exports have been growing, said active negotiations were underway to seal free trade agreements with several geographies. She said agreements with the European Union and the US were “close to finalisation".
Chouhan, when asked what India’s position would be over the US insistence to lower tariffs on agricultural products, including American soybean and maize, told this correspondent, “The interests of Indian farmers will be protected."
Conversations to finalise the first tranche of the India-US bilateral trade agreement are underway with US President Donald Trump’s July 9 deadline for 26 per cent reciprocal tariffs against India set to kick in soon.
The US is seeking greater Indian market access for some of its farm products but the government here is moving cautiously lest domestic interests be jeopardised.
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