Schedule a Call Back
India eyes duty concessions on EVs through bilateral FTAs, ruling out Across-the-Board cuts
Industry News- Dec 19,23
The preference for FTAs arises from the challenge of implementing a uniform duty cut for all companies, making bilateral agreements more viable.
India is reportedly leaning towards offering duty concessions on electric vehicles (EVs) through Free Trade Agreements (FTAs) with specific countries, as opposed to a blanket reduction in import duties. The decision to rule out a general reduction in import duties on EVs is expected to impact Tesla Inc's entry into the Indian market. The Junior Minister in the Ministry of Commerce and Industry, Som Parkash, informed Parliament on December 14 that there is currently no proposal to exempt local value addition costs or provide subsidies on the import duty for EVs in India.
The preference for FTAs arises from the challenge of implementing a uniform duty cut for all companies, making bilateral agreements more viable. The individual familiar with the matter explained that if India strikes an FTA with a particular nation, lower levies on EVs from that country can be considered, as permitted by the World Trade Organisation (WTO).
While WTO norms typically require trade barrier reductions to be applied on a most-favoured-nation basis, bilateral trade deals between two nations or regions can be exempt from this rule, allowing trade benefits to be specific to the involved parties. India, a WTO member since January 1, 1995, is currently engaged in discussions with the UK and the European Union for potential bilateral FTAs.
In negotiations with the UK, the Indian government is contemplating tariff rate quotas to accommodate the UK's request for reduced import duties on EVs as part of the proposed trade deal. Although earlier reports suggested a new EV policy in the works to cut import levies for companies committed to local manufacturing, the cited source emphasised the need to balance domestic and foreign entities, particularly given India's Production-Linked Incentive (PLI) scheme for EVs.
The Indian government has already demonstrated its commitment to EV adoption by implementing measures such as the PLI scheme for the automobile and auto component industry, with a substantial budgetary allocation to incentivise domestic manufacturing of advanced automotive technologies, including EVs. Additionally, the goods and services tax on EVs has been reduced from 12% to 5%, reflecting the government's efforts to promote the electric mobility sector.
Source: India Shipping News
Related Stories
Other Industrial Products
SKF India dedicates a song to mechanics
SKF India - a manufacturer of bearings, seals, lubrication and lubrication systems – has released "Heroes of the Road”, a heartfelt song dedicated to the unsung heroes of the automotive industry..
Read moreProcess Equipment
Why are eco-friendly refrigerants gaining popularity in food manufacturing?
While environmentally friendly and ozone-friendly refrigerants provide a clear path forward for food manufacturing companies, their implementation carries certain system design and maintenance impli..
Read moreElectrical & Electronics
Indian battery market in need of urgent active solutions
Despite active responses from domestic companies and strong interest from overseas manufacturers in the Indian market, issues related to domestic industry protection and the business environment rem..
Read moreRelated Products
Carbide Burrs
ABRASIVES & FINISHING EQUIPMENT
SRT Industrial Tools & Equipments offers a wide range of carbide burrs.
Jamshedji Soil Compactor
ABRASIVES & FINISHING EQUIPMENT
Jamshedji Constro Equip Pvt Ltd offers a wide range of jamshedji soil compactor.
Ground Pins
ABRASIVES & FINISHING EQUIPMENT
Hans Machineries Private Limited offers a wide range of pins, hardened & ground. Read more
latest News
Subscribe to iNoW
For Industry News on WhatsApp, Give a Miss Call on: +91 84228 74016
