Govt watching trade patterns to protect small, medium enterprises
New Delhi: India has warned against excess inventory dumping from foreign markets, particularly after the US imposed additional tariffs on China and other countries. The government is watching trade patterns closely to protect small and medium enterprises from unfair competition, and these are the balancing acts India has to do, Union Finance Minister Nirmala Sitharaman said in an award event.
It is learnt that the government's plan for tariff cuts has aligned with past trade pacts, not US President Donald Trump's pressure on the tariff war. On the India-US trade deal, the Union finance minister said that both sides aim for a mutually beneficial agreement. She also hinted at an intensified approach toward negotiations with the EU and UK and ensuring that national interests remain the priority for the country as well.
According to a top source, the trade-tariff development is seen as part of India's move to significantly cut its average applied tariffs to some developed countries like Australia, the United Arab Emirates, Switzerland and Norway under a series of recently concluded bilateral trade deals.
"New Delhi's move is to significantly reduce tariffs as part of the country's broader efforts to advance trade ties with the developed nations via bilateral agreements," the source said.
In the past as well, India has reduced its average applied tariffs to many developed countries, and similar talks for pacts with the European Union and the UK are currently underway. "The ongoing discussions between India and the US to reduce applied tariffs should be seen in this context and not because of Trump's looming deadline threats," the source added.
Showing confidence in India’s strong economic trajectory and emphasising its status as the world’s fastest-growing major economy since the financial year 2021, Sitharaman urged private players to be more vocal about investment sentiment.
"If you don't speak out, how will the government have any clue on how things are moving?' she asked.
The finance minister also assured the GST Council has been working on rationalising tax slabs and addressing key industry concerns, saying that GST rates will come down further, with the process of rationalising tax slabs nearing completion.
"The revenue-neutral rate had already dropped from 15.8 per cent in 2017 to 11.4 per cent in 2023 and hinted at further reductions soon," Sitharaman said.
The finance minister also said that the GST Council is close to taking a final call on key changes. "A final review is there before presenting the rationalisation proposal at the next GST Council meeting. The groups have done excellent work, but I still have taken it upon myself to completely review their findings before taking it to the council," she said.
