India is one of the few countries actively engaged in efforts to reduce tariffs and improve relations with President Donald Trump, who has frequently labeled the nation as a “tariff king” and a “tariff abuser,” threatening retaliatory measures. In response, both countries have initiated discussions aimed at reaching an early trade agreement to address these tariff-related conflicts.According to reports from Reuters, India is willing to lower tariffs on more than half of its imports from the U.S., which are valued at $23 billion. Since February, the Indian government has undertaken several measures to align its policies with Trump’s expectations. New Delhi has pledged to increase its energy imports from the U.S. to $25 billion, up from $15 billion the previous year. Additionally, Trump has indicated his support for the potential sale of F-35 stealth fighters to India. These developments followed discussions between Trump and Prime Minister Narendra Modi at the White House. India aims to significantly enhance its procurement of U.S. defense equipment and may soon designate the U.S. as its primary supplier of oil and gas.In an effort to alleviate trade tensions with the United States, India announced the elimination of the 6% digital advertisement tax, effective April 1, as stated by the finance minister on March 25. This decision is anticipated to benefit major companies such as Google, Meta, and Amazon, which had expressed concerns regarding the tax. Furthermore, India has reduced tariffs on bourbon whisky from 150% to 100%, positively impacting brands like Suntory’s Jim Beam.
In its budget announcement on February 1, India significantly lowered basic customs duties on luxury vehicles, solar cells, and machinery. The peak import tariff was decreased from 150% to 70%, while the average tariff fell from 13% to below 11%. Although the Agriculture Infrastructure Development Cess, an additional domestic tax, has kept the effective rates stable, India has committed to phasing it out as trade negotiations progress.Elon Musk’s Starlink is on the verge of receiving final regulatory approval in India, following its collaboration with Reliance and Airtel to provide satellite broadband services.
