India Evaluates Effects of US Tariffs to Maintain Trade Stability: Minister
Click to start listening
Synopsis
The Indian government is diligently analyzing the impact of US tariffs on steel and aluminum imports, with assurances of maintaining trade stability. Minister Pankaj Chaudhary indicated minimal expected export decline due to a diversified trade portfolio.
Key Takeaways
- India is assessing the US tariffs on steel and aluminum.
- No similar tariffs for pharmaceuticals and automobiles.
- India has high compliance ratings from the FATF.
- Export decline due to tariffs expected to be minimal.
- Strategic expansion and value addition in exports ongoing.
New Delhi, March 17 (NationPress) The Indian government is diligently examining the repercussions of the 25 percent tariff levied by the United States on steel and aluminium imports, as the Parliament was informed on Monday.
This import duty was enacted through proclamations from President Donald Trump on February 10, with the new tariffs taking effect on March 12.
Pankaj Chaudhary, the Minister of State for Finance, assured the Lok Sabha that the Department of Commerce is conducting a comprehensive assessment of how these duties might influence India’s trade landscape.
He confirmed, however, that no similar proclamations have been made for critical sectors such as pharmaceuticals, automobiles, and semiconductors.
In response to another inquiry, the minister underscored India's robust performance in the international battle against money laundering and terror financing.
He noted that out of 40 recommendations from the Financial Action Task Force (FATF), India received a rating of either ‘Compliant’ or ‘Largely Compliant’ for 37 of them.
The country was rated ‘Partially Compliant’ in three areas and had no ‘Non-Compliant’ ratings.
This high compliance level has led to India being placed under ‘regular follow-up’ by the FATF, the best possible assessment under the global watchdog’s framework.
Chaudhary highlighted that only three other G20 nations hold this distinction, further solidifying India's position in global efforts to combat financial crimes.
Meanwhile, as per a report from SBI Research, the influence of the US-imposed tariffs on Indian exports is anticipated to be minimal, owing to the country's diversified trade portfolio and strategic forays into new markets.
India is enhancing value addition in exports, seeking alternative pathways, and restructuring supply chain strategies that connect Europe, the US, and the Middle East.
The report predicts that India's export decline due to these tariffs will be limited to approximately 3-3.5 percent.
Nonetheless, this shortfall is expected to be counterbalanced by increased exports in both manufacturing and services.
