🇮🇳 Nirmala Sitharaman: ‘Tariff King’ Tag on India Is Unfair and Misleading
In an exclusive interview with Financial Express, Finance Minister Nirmala Sitharaman strongly rebuffed the ‘tariff king’ label often associated with India in global trade circles. She asserted that India's import duty structure is measured, strategic, and justified, especially for a developing economy focused on self-reliance and fair competition.
🗣️ “Tariff King Tag Is Absolutely Unjustified”
Speaking candidly, Sitharaman said:
“It’s an absolutely unjustified label. India’s tariffs are nowhere near as high as those levied by several other countries when contextualized against global standards, and are applied selectively to protect domestic interests.”
The comment comes amid renewed scrutiny from Western countries regarding India’s import tax regime, especially in sectors like electronics, agriculture, and automobiles.
📊 India's Tariff Policy Explained
Here are key highlights from Sitharaman’s defense of India's trade practices:
Balanced Protectionism: Tariffs are targeted to protect MSMEs and boost Make in India.
Strategic Use: Duties are revised regularly based on domestic needs, inflation control, and global competitiveness.
Global Parity: India’s weighted average tariff is comparable to that of many large economies.
WTO Compliance: India continues to align its trade practices with World Trade Organization norms.
🌍 Global Trade Context
The ‘tariff king’ phrase was first popularized during trade disputes between India and the U.S., where American leadership claimed India imposed the highest tariffs. Sitharaman argued that such labels ignore India's developmental priorities and economic structure.
She added that tariff flexibility remains vital for economic sovereignty, especially in times of geopolitical flux and supply chain disruptions.
❓ FAQ: Nirmala Sitharaman’s Views on Tariff and Trade Policy
Q1. Why is India being called a ‘tariff king’?
India has been criticized for high import duties in select sectors. However, this claim lacks nuance and context, says Sitharaman.
Q2. Are India’s tariffs higher than other countries?
Not necessarily. India’s average tariffs are aligned with global practices and justified based on domestic economic needs.
Q3. What is the government’s defense?
The government states tariffs are tools to protect nascent industries, prevent dumping, and safeguard jobs.
Q4. Is India violating WTO rules with high tariffs?
No. Sitharaman confirmed that India remains fully compliant with WTO obligations.
Q5. Will India reduce tariffs in the near future?
Tariff decisions are strategic and flexible, and any future changes will depend on sectoral performance and global market shifts.
📢 Final Take
This exclusive from Finance Minister Nirmala Sitharaman sheds light on India’s rational trade policy and counters oversimplified global narratives. As India positions itself as a major player in global supply chains, its duty structure will remain a key policy lever — not a liability.
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Reported by Benny on June 30, 2025.
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