India's Import Tariffs
India’s average import tariff in 2023 was 17%, much higher than the U.S.’s 3.3%.
India’s tariffs are the highest among comparable economies, especially BRICS nations, followed by Brazil (11%) and China/South Africa (7%).
India’s tariffs on agricultural products are particularly high to protect domestic agriculture, while tariffs on manufactured goods are lower.
Tariff Comparison and Trends
India’s average tariff on non-agricultural goods remained below 15% from 2018-2023.
Agricultural tariffs have been consistently more than double the tariffs on non-agricultural goods, exceeding 38% most years.
Reasons for High Agricultural Tariffs
High tariffs protect food security and farmers’ livelihoods in India.
India’s agriculture is inefficient due to low investment (6% of total investment), making it vulnerable to global competition.
U.S. agricultural subsidies complicate tariff reduction, as subsidized products flood the market.
Product-Specific Tariffs
Agricultural, dairy, and tobacco products attract import duties over 30%.
Tariffs on transport equipment, cotton, and textiles decreased, while those on electrical machinery and manufactured goods increased.
Impact of U.S. Tariff Policies
U.S. President Trump’s talk of "reciprocal tariffs" may pressure India to reduce agricultural tariffs.
India’s export to the U.S. has increased, widening the trade surplus.
India’s tariff policies may become a key point in future U.S.-India trade negotiations.
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