Source: GulfNews; Bloomberg 
Date: 6th February 2025

In its first major tariff overhaul, India removed high tariffs on 8,500 industrial goods.

India will continue to bring down tariffs and phase out additional levies on imports as domestic manufacturing improves, a top finance ministry official said.

“We will soon start stakeholder consultations with ministries on whether rates can be lowered further without impacting the industry,” the chairman of the country’s Central Board of Indirect Taxes and Customs told Bloomberg News in an interview.

“As value chains get deeper, custom duties must be reduced otherwise inefficiencies set in,” the chairman of the country’s Central Board of Indirect Taxes and Customs said without specifying when the levies will be reduced.

The South Asian nation made significant cuts to import tariffs in its budget on a range of products, including motorcycles made by Harley-Davidson Inc., to shake off the “tariff king” label.

In the first major overhaul of its tariff structure, India removed high rates from some 8,500 industrial goods. While the tax incidence has remained the same because of additional levies on imports, the chairman of the country’s Central Board of Indirect Taxes and Customs said the surcharges are “temporary in nature and would eventually be phased out.”

Traditionally, India has protected domestic industries such as automobiles and pharmaceuticals through government incentives and high import tariffs.