US penal tariff on Indian imports likely to be withdrawn after November 30: CEA V Anantha Nageswaran

Chief Economic Adviser (CEA) V Anantha Nageswaran on Thursday expressed confidence that the penal tariff imposed on certain imports may be withdrawn after November 30, raising hopes of a potential easing of trade restrictions amid ongoing discussions.

Speaking at an event organised by the Merchants' Chamber of Commerce & Industry in Kolkata, Anantha Nageswaran said, "All of us are already at work, and I will take some time to talk about the tariff here. Yes, the original reciprocal tariff of 25 per cent plus the penal tariff of 25 per cent both were not anticipated. I still believe that geopolitical circumstances may have led to the second 25 per cent tariff, but considering recent developments in the last couple of weeks and so on, I do believe that and I have no particular reason to say so it is my intuition that I do believe the penal tariff will not be there after November 30."

The CEA further added, "I do believe that there will be a resolution in the next couple of months on the penal tariff and hopefully on the reciprocal tariffs," while pointing to the continued trade talks between India and the U.S.

Highlighting India’s growing trade strength, Nageswaran noted that the country’s exports have touched $850 billion annually and are on course to hit $1 trillion, representing 25 per cent of GDP — a sign of a healthy and open economy.