India's overall average tariff rate at 17%, 39% on agri goods, says MoS Commerce

Minister of State for Commerce and Industry Jitin Prasada

India's simple average tariff rate on industrial goods has been brought down to 10.66 percent after the Budget for 2025-26, while that on agriculture items, including textiles, sits at 39 percent as per 2023-levels, Minister of State for Commerce Jitin Prasada said while responding to a question on US's claim on steep duties.

According to World Trade Organization (WTO) 2023, India’s simple average tariff rate is 17 percent, with simple average agricultural tariff (which includes textiles) being 39 percent and for industrial goods 13.5 percent for the year 2023," Prasad said in a written response in Lok Sabha on March 25.

"The effective tariff rates were much lower through notifications issued by the government," Prasada said commenting on the average tariffs on industrial goods.

His comments come at a time when India and United States are set to begin another round of talks with assistant US trade representative Brendan Lynch arriving in New Delhi on March 25 evening for a four-day visit, days ahead of American reciprocal tariffs coming into effect.

On the agenda is the broad contours of the proposed trade deal as well as securing an exception from President Donald Trump’s tit-for-tat tariff plan, sources said.

With Trump’s “Fair and Reciprocal Plan” expected to kick in from April 2, India is readying a policy pill to pacify Trump by lowering tariffs on a host of products, sources said.

The US is set to levy tariffs on countries that impose high duties on American goods to ensure what Trump describes as “fair trade”.

Lynch is expected to hold closed-door meetings with senior ministers and officials from external affairs ministry and the Prime Minister’s Office to take forward talks on the proposed Bilateral Trade Agreement (BTA).

India is agreeable to cutting duties on a host of sectors such as gems and jewellery, automobile parts, textiles, chemicals as part of the proposed trade deal with US. This would be in return for America lowering duties on certain products.

India and the US are also looking to agree to the first tranche of a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA) by the fall of this year.