Pressure on India to reduce trade barriers; amid move to promote Make in India
Pressure has mounted on India to cut tariff amid the country’s move to increase customs duties on dozens of products to help its flagship Make-in-India drive aggravated differences over trade.
One of the example is Ford, which has two plants in India.
The company has sought a reversal of the new tariffs on auto components.
Similarly, the mobile phone maker Apple Inc is concerned its iPhones have become even more expensive in the price-conscious $10 billion smartphone market.
India and the United States have built close political ties but trade friction is casting a shadow.
Trump had earlier called out for India on reduction of duties on Harley-Davidson motorbikes.
This was reciprocated well by the Modi government which ordered them cut to 50 percent from 75 percent for high-end bikes.
India announced higher import tax on electronics products such as mobile phones and television sets in December and then on 40 more items in the budget this month.
Bilateral trade between India and the United States has grown to about $115 billion in 2016 from $20 billion in 2001. >