By Nikunj Ohri
NEW DELHI -U.S. President Donald Trump on Wednesday slapped 25% tariffs on Indian items beginning Aug. 1, with an extra penalty on Russian oil purchases, and he criticized New Delhi for its “strenuous and obnoxious” non-monetary commerce limitations. Trump stated later negotiations have been persevering with.
Following are a few of these non-tariff commerce limitations, in accordance with a March report by the Workplace of the U.S. Commerce Consultant:
IMPORT CS
India imposes quantitative restrictions on imports akin to pulses and beans, limiting U.S. market entry.
In 2023 India imposed limits on imports of laptops and tablets, and introduced a brand new licensing requirement impacting shipments from the likes of Apple and Dell, the implementation of which was prolonged till December 31, 2025. The purpose was to spice up home manufacturing.
TECHNICAL BARRIERS
India has tightened quality-control requirements by making them obligatory throughout extra sectors, together with chemical compounds, medical units, batteries, electronics, meals and textiles.
These high quality orders are ruled by India’s requirements certification authority, aren’t absolutely aligned with worldwide requirements, and lack clear timelines for transition durations and license validity.
DAIRY
India requires certification that dairy merchandise aren’t sourced from animals which were fed meat or animal-based feed to respect the spiritual beliefs of the inhabitants. However this hampers market entry for U.S. milk and dairy product exports to India, one of many largest dairy markets on the planet.
INTERNET SERVICES AND DATA LOCALISATION
India’s info expertise legal guidelines impose private felony legal responsibility on staff, and embrace “impractical compliance deadlines and take-down protocols”. Since 2021, U.S. corporations have been topic to an growing variety of content material and account takedown requests that “seem politically motivated”.
India’s draft data-privacy legal guidelines require disclosures of non-public information to the federal government, and empower it to limit cross-border information transfers to a selected nation.
ONEROUS CUSTOMS PROCEDURES
U.S. exporters have raised considerations concerning Indian customs authorities’ valuation standards for imports. Transaction worth of imports is rejected by authorities, and U.S. corporations have confronted investigations for his or her use of sure valuation methodologies when importing laptop tools.
BANKS AND INSURANCE COMPANIES
The U.S. has flagged curbs on overseas funding in Indian banks and insurers. Possession in state-run banks is capped at 20% though they’ve a 60% market share in India and type 67% of financial institution branches. Overseas banks are subjected to opaque limits on enlargement, and state-owned insurers function below totally different guidelines and luxuriate in authorities ensures.
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