New Delhi: The Indian government is closely analysing the impact of the 25 per cent tariff imposed by the United States on steel and aluminium imports, the Parliament was informed on Monday.
The US had implemented this import duty through proclamations issued by President Donald Trump on February 10. The new tariffs have come into effect from March 12.
Minister of State for Finance, Pankaj Chaudhary, assured the Lok Sabha that the Department of Commerce is thoroughly evaluating how these new duties could affect India’s trade.
However, he confirmed that no similar proclamations have been issued for key sectors like pharmaceuticals, automobiles, and semiconductors.
In response to another query, the minister highlighted India’s strong performance in the global fight against money laundering and terror financing.
He stated that out of 40 recommendations by the Financial Action Task Force (FATF), India received either a ‘Compliant’ or ‘Largely Compliant’ rating for 37 of them.
The country was rated ‘Partially Compliant’ in three areas and had no ‘Non-Compliant’ ratings.
Due to this high compliance level, India has been placed under ‘regular follow-up’ by the FATF, which is the best possible assessment under the global watchdog’s methodology.
Chaudhary emphasised that only three other G20 nations share this distinction, further strengthening India’s position in global efforts to counter financial crimes.
Meanwhile, according to a report by SBI Research, the impact of the US-imposed tariffs on Indian exports is expected to be minimal, thanks to the country’s diversified trade portfolio and strategic expansion into new markets.
India is enhancing value addition in exports, exploring alternative routes, and redrawing supply chain strategies that connect Europe, the US, and the Middle East.
The report estimates that India’s export decline due to these tariffs will be limited to around 3-3.5 per cent.
However, this shortfall is expected to be offset by higher exports in both manufacturing and services.
(IANS)
