Trump tariffs: Will import duty war push India to open its markets?

Could this be a chance for the world’s fifth-largest economy to shed protectionism and open up further?

British Broadcasting CorporationWatch LiveHomeNewsSportBusinessInnovationCultureArtsTravelEarthAudioVideoLiveHomeNewsIsrael-Gaza WarWar in UkraineUS & CanadaUKUK PoliticsEnglandN. IrelandN. Ireland PoliticsScotlandScotland PoliticsWalesWales PoliticsAfricaAsiaChinaIndiaAustraliaEuropeLatin AmericaMiddle EastIn PicturesBBC InDepthBBC VerifySportBusinessExecutive LoungeTechnology of BusinessFuture of BusinessInnovationTechnologyScience & HealthArtificial IntelligenceAI v the MindCultureFilm & TVMusicArt & DesignStyleBooksEntertainment NewsArtsArts in MotionTravelDestinationsAfricaAntarcticaAsiaAustralia and PacificCaribbean & BermudaCentral AmericaEuropeMiddle EastNorth AmericaSouth AmericaWorld’s TableCulture & ExperiencesAdventuresThe SpeciaListEarthNatural WondersWeather & ScienceClimate SolutionsSustainable BusinessGreen LivingAudioPodcastsRadioAudio FAQsVideoLiveLive NewsLive SportHomeNewsSportBusinessInnovationCultureArtsTravelEarthAudioVideoLiveWeatherNewslettersWill Trump's tariff war spark big-bang reforms in India?17 hours agoShareSaveSoutik BiswasIndia correspondent•@soutikBBCShareSaveGetty ImagesAhead of PM Modi's meeting with Trump in February, India cut tariffs on some US productsIndia has usually turned to economic reforms in times of distress, with the most famous example being 1991, when the country embraced liberalisation in the face of a deep financial crisis.

Now, with US President Donald Trump's tit-for-tat tariff wars and the global trade upheaval that has followed, many believe that India finds itself at another crossroad.

Could this be a major opportunity for the world's fifth largest economy to shed its protectionism and further open up its economy? Will India seize the moment, just as it did more than three decades ago, or will it retreat further?

Trump has repeatedly branded India a "tariff king" and a "big abuser" of trade ties. The problem is that India's trade-weighted import duties - the average duty rate per imported product - are among the highest in the world. The US average tariff is 2.2%, China's is 3% and Japan's is 1.7%. India's stands at a whopping 12%, according to data from the World Trade Organization.

High tariffs increase costs for companies dependent on global value chains, hindering their ability to compete in international markets. They also mean that Indians pay more on imported goods than foreign consumers. Despite growing exports - primarily driven by services - India runs a significant trade deficit. However, with India's share of global exports at a mere 1.5%, the challenge becomes even more urgent.

https://www.bbc.com/news/articles/cd0nr05yxmzo

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