Indian government has further postponed the deadline for the imposition of higher customs duties on some products imported from the United States for another 45 days until November 2. Earlier in June, India had decided to impose retaliatory tariffs on some US products, including almonds, walnuts and apples from August 4, but it was extended by another 45 days till September 18.
India and the US are holding two track discussions which include -- increasing trade in short and medium term, and identifying long term trade potentials. The country is stressing for exemption from high customs duty imposed by the US on certain steel and aluminium products, greater market access for its products from sectors, including agriculture, automobile, auto components and engineering and resumption of export benefits to certain domestic products under their Generalised System of Preferences (GSP).
The central government has notified about higher tariffs on several products. Import duty on chickpeas, Bengal gram (chana) and masur dal will be hiked to 70% from 30%, while duty on walnut will be hiked to 120% from 30%. Furthermore, duty on lentils will be hiked to 40% from 30%. Apart from these products, boric acid, phosphoric acid, diagnostic reagent, flat-rolled products of iron, certain flat-rolled products of stainless steel, would attract higher duties.
India exports steel and aluminium products worth about $1.5 billion to the US every year. Indian exports to the US in 2017-18 stood at $47.9 billion, while imports were $26.7 billion. The trade balance is in favour of India. While, Exports to the US in 2016-17 stood at $42.21 billion, while imports were $22.3 billion.