Syllabus: GS-III, Subject: Economy, Topic: Trade and external sector, Issue: India’s trade policy
Tariff regime of India:
- India steadily reduced tariffs from the early 1990s until 2014.
- Increase in tariff is driven by the call for self-reliance.
- India’s tariffs are now higher than China, Vietnam, and Bangladesh, affecting export competitiveness and hurting consumers.
Conclusion:
- A more balanced approach to protectionism.
- Reduction in duties on components to attract manufacturers.
- Alongside tariff reduction, India must pursue trade agreements with countries like the UK and the EU to boost exports and promote manufacturing.
