Rama Krishna Sangem
Finance Minister Nirmala Sitharaman said on March 27, Wednesday, that the imposition of tariffs is not the permanent stance of the government and that caliberations are being made on the policy. Her remarks have importance in view of constant complaints from the US that India is imposing high tariffs on its exports.
Recently, US EV car maker Telsa put pressure on India to lower import duty on foreign automobiles if they set up manufacturing units in the country. Long ago, former US president Donald Trump commented India had become “a tariff king”.
At the Business Standard Manthan, Sitharaman said that the increase of tariffs do help the industry to grow within the country, and the decisions on these are driven by the fact that Centre thinks India cannot afford to have cheap imports coming in.
“But if your production is not of a certain quality, or cost competitive, obviously you’d have to face the music and artificial protection creating efficiencies can be supported and we are conscious of them,” she said in a fireside chat with AK Bhattacharya, editorial director at Business Standard.
“So, there are calibrations being done in this policy, keeping India’s capacities where you can grow, where you can become more efficient, in mind. We do want to give this protection but for some time and not sort of permanently shut the door off. That’s not a permanent stance.”
She added that the Centre is closely monitoring the valuation of public sector companies and is working on improving it before their listing. “Even if it is going to take time, we are making sure that the valuation of these companies is improved even before we take them to the market,” she said.
“The valuation of these companies is being very closely monitored, if anything, it is being improved.” Sitharaman also said that it is important to maintain the current momentum of reforms to make India a developed nation by 2047.
“I just want to underline the fact that sustaining the momentum on reforms is a very important factor based on which we have the confidence to be able to reach 2047 with the kind of goals which we wish to achieve,” she said in her keynote address.
She said that in matters of economy, the differences between the Centre and States must not arise on the grounds of politics.
