New Delhi: India and the US have been facing problems because of high import taxes (tariffs). But now, there is good news. India’s top economic expert, Chief Economic Advisor V. Anantha Nageswaran, has said that the US may soon remove the extra 25 percent tax on Indian products.
What Did the Advisor Say?
On 18th September, Nageswaran said, 'That 25 percent penalty tariff was put due to political reasons. But looking at recent events, I believe this extra tax will not stay after 30th November.'
He also said, 'I don’t have solid proof, but it is my guess. Both countries are trying to reduce trade tensions.'
He revealed that US trade officials had visited India just a few days ago.
How Much Tariff Will Remain Then?
Earlier, the US had put a 25 percent tax on Indian goods. Later, because India bought oil from Russia, the US added another 25 percent. So, Indian goods faced 50 percent tax in total.
If the US removes the penalty tax, it will become 25 percent again.
If India also reduces its tax in response, then the tariff may go down to just 10-15 percent.
Talks Between India and the US Restarted
There had been no major progress on trade talks between India and the US for a while. But now, discussions have started again. US officials visited Delhi recently and met Indian leaders.
These talks were said to be positive, and experts hope that a trade deal and tariff changes might happen soon.
