No loss to country on removal of US retaliatory tariffs: Govt tells Parliament

The government on Friday told Parliament said that the removal of retaliatory customs duties on eight American products, including apples, walnuts, and lentils, will not result in a loss to the country.

India had imposed these duties on 28 US products in retaliation to the US’ move to increase import duty on certain steel and aluminium goods.

“The government has decided to remove retaliatory customs duties on import of almonds (fresh or dried, in shell), walnuts, chickpeas, lentils, apples, medical diagnostic reagents, and boric acid, minister of state for commerce and industry Anupriya Patel said in a written reply to the Rajya Sabha.

During Prime Minister Narendra Modi’s recent visit to Washington, both sides decided to resolve six trade disputes at the World Trade Organisation. India also agreed to remove the duties.

“The removal of retaliatory tariffs or cuts in import duty with the US does not result in a loss to India,” she said.

“It simply means that the additional duties imposed as a response to the US measures are no longer applicable and the MFN (most favoured nation) tariff rates as applicable to all countries prevail,” she added.

FDI dips

Threat of a global recession, economic crisis triggered by the Russia-Ukraine war and dip in the real GDP growth rate of countries like Singapore, the US and UK are some of the reasons for Foreign direct investment (FDI) decline in India in 2022-23, Parliament was informed on Friday.FDI into India declined 22% to $46 billion in FY23, dragged by lower inflows in computer hardware and software, and automobile industry.

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In a written reply to the Rajya Sabha, minister of state for commerce and industry Som Parkash said the major reasons for shortfall in FDI in 2022-23 include a tighter financial environment and a string of financial crises in global markets in general and developing markets in particular besides the economic crisis due to Russia-Ukraine conflict.

“Post pandemic, countries have adopted various protectionist measures to decrease reliance on other countries and protect their own domestic industries,” he said, adding that this could also be a possible reason affecting investor sentiments.

Total FDI, which includes equity inflows, reinvested earnings and other capital, also declined 16% to $70.97 billion in the last fiscal from $84.83 billion in FY22.

The real GDP growth rates of Singapore, the US and UK have decreased in 2022, which are the major source countries for FDI, Parkash said.

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