India unlikely to cut tariffs across-the-board

• India may not reduce tariffs across the board, but may ease non-tariff barriers to counter reciprocal tariffs.
• A reciprocal tariff by the U.S. could increase India’s import tariff to 15.7% from 2.7%, covering almost all exports.
• Easing non-tariff barriers, including expanding purchases from the U.S., could be a solution.
• The U.S. constituted 18% of India’s merchandise exports in 2024, while India’s import tariff on the U.S. is 6.5%.
• Agricultural exports are most affected, with a 2.3% higher weighted import duty on agri products.