India vows to avoid protectionist signals on trade

3/2/2025 12:42

India does not want to give any signal that it is protectionist, the top bureaucrat in the finance ministry said, after slashing import duties on high-end motorcycles, amid U.S. President Donald Trump's moves on tariffs.



Sunday's remarks came a day after Trump ignited a trade war with sweeping tariffs on Canada, Mexico and China. None were aimed at India, although Trump had called it a tariff abuser during his election campaign last year.



Trade and immigration issues will take centrestage when Indian Prime Minister Narendra Modi meets Trump this month.



India has been trying to placate the Trump administration after it accused the South Asian nation of maintaining very high tariffs that hurt prospects for American firms.



Trump's administration has upped the ante by recently raising the issue of undocumented Indians living in the United States, a topic on which India's foreign ministry has said it is in dialogue with U.S. authorities.



India slashed custom duties on motorcycles with engine capacity of 1,600 cc or more to 30% from 50% on fully-built imports in Saturday's budget, which Pandey said also cut its average level of tariffs to 11% from 13%.