Blueberries to turkeys India slashes duties to boost trade ties with US

New Delhi: In a significant move aimed at enhancing trade relations with the USA, the Indian government has announced key revisions in import duties. The Finance Ministry has declared a full exemption from customs duty on the import of extra-long staple cotton. Additionally, duties on specific varieties of imported blueberries, cranberries, and frozen turkeys have been reduced.

According to a recent notification from the Finance Ministry, the import duty on certain blueberries and cranberries has been reduced from 30% to 10% in some cases and to 5% in others. Similarly, import duties on meat and edible offal of turkeys have been slashed from 30% to 5%, effective immediately.

These changes follow a recommendation from the Department of Commerce, stemming from a mutually agreed solution between India and the US. This move is in line with the bilateral agreement reached during the recent G20 Leaders' Summit, intending to address past disputes and foster smoother trade relations.

Khushbu Trivedi, Associate Director- Indirect Tax at Nangia Andersen India, highlighted the proactive nature of the government's decision, emphasizing its potential benefits for both nations and other WTO members. Trivedi explained that reducing duties on niche items, scarcely produced in India, would aid the USA in penetrating the Indian market while lowering prices for consumers.

In response to concerns raised by the cotton industry, the Ministry has also abolished import duty on specific types of cotton, exceeding a staple length of 32mm. Trivedi lauded this decision as reflective of the government's responsiveness to industry feedback and its commitment to adapting import regulations to benefit stakeholders in the cotton sector.

These duty revisions signal a concerted effort by the Indian government to foster mutually beneficial trade relationships, address industry concerns, and promote economic cooperation with global partners.