Responding to the US Administration’s proposal to impose “reciprocal” tariffs on its trading partners, the Indian government has set up a high-level committee to review the potential liberalization of the existing tariff regime, expecting a lower rate would attract a lesser reciprocal response from the US, government sources said on Wednesday, February 26.
The committee has been set up under the ministry of commerce and heavy industries and is directed to submit its report by March 15.
Once the panel submits its recommendations, the final decision will require approval from the Prime Minister’s Office before implementation. India has already demonstrated responsiveness in addressing concerns over high tariffs on foreign goods, and this review will play a key role in shaping its approach to the US's proposed tariff measures, the sources said.
The agenda before the committee is to review India’s tariffs ranging across multiple brackets, including 15–20 percent, 50–70 percent and 70–80 percent.
This is in response to the Trump Administration’s proposal that it would impose the same rate of tariff on the import of a specific product from India, as the latter levies on the import of the same product into the country from the US.
The committee will examine whether adjustments can be made based on the “8-digit code” system used to classify specific products for customs purposes. The primary goal is to assess the scope for possible tariff reductions and recommend strategic adjustments that align with India’s broader trade objectives.