‘Your Opinions Are Not Facts, Mr Trump’: India  Not A Tariff King, World Bank Official ClarifiesUS President, Donald Trump. (Joe Raedle/Getty Images)

According to Shanta Devarajan, the World Bank's Senior Director for Development Economics and Acting Chief Economist, India’s tariff levels aren’t as high as the United States (US) President makes it out to be. Also, he mentioned that the Indian economy is much more open and liberalised now than in the preceding decades, as reported by the PTI.

“That (India being a tariff king) certainly is not what we find in our data,” he said in an interview, adding that, "India has some tariffs, but by no means, it's not (tariff) king.” It should also be noted that even in the South Asian region, India does not have the highest tariffs. “Tariffs were very high in 1991, when they liberalised and they found that actually the economy boomed. That has helped to build political support for further reforms” Mr Shanta said while describing India’s growth trajectory.

The US President, Donald Trump, who has been very vocal against US’s trade deficit with other countries, had earlier called India a ‘tariff king.’ He cited examples of the high tariffs imposed on Harley Davidson motorcycles sold in India.

However, in all fairness, these motorcycles are so premium that a tiny group of Indians can afford them. For such a group, change in tariffs will be a secondary consideration and taxes on such products allow the government to collect funds to finance welfare programmes.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement