Trump Tariff: America is going to impose new tariffs on the whole world from Wednesday which will also affect India. The effect of this news was also seen on the Indian stock market where on Tuesday the Sensex fell by 1400 points and the Nifty fell by 353 points. The Indian government is preparing a strategy to reduce its impact.
White House statement and Trumps announcement
US President Donald Trump had already announced that the US will impose the same tariff on those countries as they impose on America. Trump called April 2 Liberation Day and said that India is going to reduce its tariffs significantly which will improve the trade balance.
Objective of Indias tariff policy
In response to the US statement the Indian government said that the purpose of its tariff policy is to control trade protect domestic industries and increase revenue by imposing taxes on imports and exports. This maintains stability in the Indian markets and strengthens the countrys economy.
India moving towards free trade agreements
In view of the changing global trade scenario India is moving towards free trade agreements (FTAs) to reduce custom duties and other trade barriers. Its aim is to make trade easier and make Indian products more competitive globally.
Plan to promote domestic manufacturing
India aims to promote domestic manufacturing by reducing tariffs and strengthen its competitiveness in international trade. The government wants Indian industries to get more opportunities in the world market and make the countrys economy stronger.
