An Indian parliamentary committee recommended yesterday the government cut tariffs on imports of raw materials in a bid to support local manufacturers, who are expected to come under more pressure in looming trade talks with Washington.
The committee, set up to examine trade and commerce legislation, said tariffs on incoming raw materials should come down to the lower level currently imposed on imported finished goods, to help local makers compete.
India is preparing to kick off negotiations on a trade pact with the administration of US President Donald Trump, who has been pushing for significantly lower duties on US goods coming into India.
India is also planning to seal trade pacts with the European Union and New Zealand this year, and has expedited talks with Britain over a trade deal.
The report released by the committee did not mention the upcoming US trade talks but said it wanted to ensure “a level playing field for domestic manufacturers”.
“The committee recommends implementing matching tariff reductions that adjusts tariffs on raw materials in response to lower import duties on finished goods,” it said.
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