India may soon receive a major trade boost as the United States is reportedly considering lifting the heavy tariffs imposed on Indian goods. Speaking at a recent event in Kolkata, India’s Chief Economic Advisor V. Anantha Nageswaran indicated that the punitive duties of up to 50 percent on some US imports from India could be removed, signaling potential success in ongoing bilateral talks.

Tariff Background
Initially, India faced a 25 percent standard tariff, which was later doubled with an additional 25 percent punitive duty, totaling 50 percent. These tariffs were imposed under the International Emergency Economic Powers Act (IEEPA) of 1977, citing US security and economic interests.

Possible Timeline for Relief
The CEA noted that the additional punitive duty might be withdrawn after November 30, 2025, and a solution to the reciprocal tariff issue between India and the US is expected within the next few months. Such developments are anticipated to facilitate trade and strengthen economic ties.

Impact on India’s Exports
India’s exports are currently around US$850 billion annually, with plans to reach US$1 trillion in the coming years. The removal of these tariffs is expected to further boost India’s exports and reinforce its position as a strong, open economy.

Positive Outlook Ahead
The potential lifting of tariffs marks a hopeful moment for India-US trade relations, paving the way for easier access to the US market for Indian products and reinforcing economic cooperation between the two countries.