India’s Tactical Tariff Cut: A Clever Move for Global Trade Talks in 2025

crypthub

about 7 hours ago

Strategic Tariff Relief

India cut tariffs on electronics components, pharmaceutical raw materials and renewable‑energy equipment, lowering import costs and spurring domestic manufacturing. The Ministry of Commerce framed the move as part of a broader liberalisation that still protects emerging sectors. It aligns with WTO commitments and responds to partner concerns over market‑access barriers.

Boost to Trade Negotiations

The reductions have revived talks with the EU and the UK and strengthened India’s role in the Indo‑Pacific Economic Framework. Import volumes of the affected goods rose 18% in the first month, while foreign portfolio inflows hit $2.1 billion. ING projects a 0.8 % lift in India’s GDP over three years if major agreements are sealed.

Global Implications

Amid supply‑chain diversification and climate‑focused trade, India positions itself as a reliable partner for diversified markets. The policy supports the goal of a $5 trillion economy by 2027 and helps curb inflation, with CPI falling to 4.2 %. Continued industrial upgrading will be needed to balance competition and growth.