New Delhi: In a major development just ahead of the G20 Summit, India has decided to eliminate additional duties on select American products, which is poised to bring significant relief to consumers and boost imports of these commodities in the Indian market. Among the items set to get cheaper are chickpeas, lentils, walnuts, and apples. This pivotal decision comes after India imposed these extra duties in 2019 in response to the United States’ decision to raise tariffs on specific steel and aluminum products.
India’s duty rollback
The Indian government has officially communicated its decision to remove these additional duties, impacting several key US imports:
Chickpeas – 10 percent duty reduction.
Almonds (fresh or dried) – Duty reduced to Rs 7 per kg.
Shelled Almonds – Duty reduced to Rs 20 per kg.
Lentils – A substantial 20 percent duty reduction.
Walnuts – A substantial 20 percent duty reduction.
Fresh Apples – A notable 20 percent duty reduction.
This bold step aims to not only reduce the financial burden on consumers but also foster increased trade in these specific products.
Backdrop of the decision
The decision to eliminate additional duties on these American imports comes on the eve of US President Joe Biden’s visit to India for the G20 Summit scheduled for September 9-10. A crucial bilateral meeting is slated for September 8 between Prime Minister Narendra Modi and President Biden.
It’s worth recalling that during Prime Minister Modi’s state visit to the United States in June 2023, both nations agreed to terminate six World Trade Organization (WTO) disputes and remove retaliatory tariffs on specific US goods.
A boost for trade
The United States stands as India’s largest trading partner, with bilateral goods trade surging to USD 128.8 billion in 2022-23, marking a notable rise from USD 119.5 billion in the previous fiscal year.
This duty rollback is particularly promising for American apple growers, as the move reopens access to the lucrative USD 120 million Indian market. Senator Cantwell, a Democratic Party lawmaker, lauded this development, emphasizing its significant impact on US growers.
India’s decision to remove additional duties on key US imports is a step toward fostering smoother trade relations between the two nations. It not only makes these commodities more accessible to Indian consumers but also underscores the importance of diplomacy and negotiation in global trade dynamics. Shoppers can now anticipate more budget-friendly prices for chickpeas, lentils, walnuts, and apples.
