India’s tariff regime: Costs of a barrier

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.


  • 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.
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