As trade talks between India and the US continue, India made it clear on Tuesday that it will not easily budge on key issues like domestic tariff rates and the US demand for lower duties on its farm products.
Finance Minister Nirmala Sitharaman responded to US President Donald Trump’s repeated criticism, who called India a “very big tariff abuser.” Sitharaman explained that India’s tariff rates are often misunderstood.
“We get parliamentary approval for maximum tariff levels, but the actual tariffs charged are usually much lower,” she said.
“People see the approved ceiling and think that’s the rate we impose. In reality, India has only eight tariff rates, including a zero rate,” she added.
She also highlighted that India has reduced average customs duties in recent budgets—from 11.65% to 10.66%—bringing India closer to the tariff levels of Southeast Asian countries. Despite global uncertainties, Indian exports are growing, and free trade agreements with the European Union and the US are nearly finalised.
Meanwhile, Agriculture Minister Shivraj Singh Chouhan reassured that during talks about US farm products like soybean and maize, the interests of Indian farmers will be protected.
With a deadline set by the US for July 9 to impose 26% reciprocal tariffs on India, the government is being cautious, balancing the need for better market access with protecting domestic agriculture.
The ongoing negotiations reflect a delicate dance between opening markets and safeguarding national priorities.
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