Last Updated:June 24, 2025, 16:51 IST
Nirmala Sitharaman dismissed claims that India is a “tariff king,” stating customs duties have been rationalised. She outlined a five-step strategy to boost exports.
FM Nirmala Sitharaman confirms that India’s effective customers duties are lower than as mentioned in files.
Union Finance Minister Nirmala Sitharaman on Tuesday dismissed longstanding claims—mainly from U.S. quarters—that India is a “tariff king,” saying the country has significantly rationalised its customs duties over recent years. Speaking at the EXIM Bank Trade Conclave in Delhi, Sitharaman underlined that India has reduced its tariff structure to just eight slabs, including a zero per cent rate.
Effective Tariff Rates Are Much Lower
Responding to international criticism, especially remarks made during Donald Trump’s presidency, Sitharaman clarified that the published tariff limits are often misunderstood. India, she said, seeks parliamentary approval to set maximum tariff thresholds, but the actual applied rates are much lower. However, it’s the approved ceiling rates that appear in gazette notifications and global databases—creating a misleading impression of India’s tariff regime.
“Our procedures give the impression of being restrictive, but the effective rates are not as high as believed. In fact, the 2024-25 Budget removed seven tariff categories, leaving just eight, including zero,” she added.
Five-Pronged Strategy to Boost Exports
To support exporters and improve India’s trade environment, the government has implemented a five-step strategy. These include:
- Transport and logistics upgrades to reduce costs
- Targeted MSME support to strengthen smaller exporters
- Easier access to trade finance
- Development of trade clusters
- Ongoing Free Trade Agreement (FTA) negotiations with key global partners
These efforts aim to promote manufacturing, encourage value addition, and make Indian goods more competitive abroad.
Countering the ‘Tariff King’ Narrative
The comment made by former U.S. President Donald Trump branding India as the “tariff king” has often surfaced in trade discussions. Trump cited high import duties—claiming tariffs as high as 52%. Sitharaman’s remarks now aim to correct that perception, showing India as a reform-driven, export-friendly economy working to align with global standards.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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