look news india
The European Union wants India to remove the tariff: The danger of ‘trade war’ has increased after US President Donald Trump imposed a mutual tariff. Meanwhile, the European Union wants India to remove the duty on car imports under the long pending trade agreement. Sources say that the Modi government is ready to simplify the proposal to finalize its dialogue.
According to a report, a government official said that India is ready to reduce the tariff from 100 percent to 10 percent. This has come at a time when the industry is pressurizing India to maintain a minimum tariff 30 percent. In addition, there should be no change in import duty on electric vehicles for the next four years to protect local traders.
Demand to abolish import duty on cars including electric vehicles
The demand for the European Union (EU) to abolish the duty on car imports came at a time when the administration of US President Donald Trump had recently sought to abolish the import duty on cars including electric vehicles as part of bilateral trade talks with India, which put pressure on domestic car manufacturers. India’s problem has also increased due to tariffs.
These cars can be cheaper.
Lack of tariff will be a major victory for European car manufacturers such as Woakeswagen, Mercedes-Benz and BMW, which will increase their presence in India. This can also be a win for Allen Musk’s Tesla, which will start selling imported electric vehicles in India this year. If the government decides to reduce tariffs, then the prices of these cars in India may decrease.
According to a source in the industry, “The European Union has requested a better deal and India is also willing to offer better.” In addition, the Ministry of Commerce of India informed the officials of the Ministry of Large Industry and the representatives of the auto industry about the demands of the European Union and the stance of India.
India is a 4 million unit market.
India’s 4 million units of car market per year is the largest in the world, and domestic car manufacturers have argued that a huge decrease in tariffs will discourage investment in domestic production, as imports will become cheaper. Companies like Tata Motors and Mahindra & Mahindra have advocated against reducing import duty on electric vehicles, especially on electric vehicles. He says that this will harm the area in which he has invested heavily and is planning to invest more.
However, it is not yet clear whether India has proposed a 10 percent tariff before the European Union, but analysts believe that there is a scope for dialogue between the two sides in view of the apprehension of the global trade war and the impact of the recession due to the great tariff growth of Trump.
