WTO compliant trade tariffs meant for national development: FM Sitharaman

The trade tariffs running up to 100 per cent, consistent with the World Trade Organisation norms, are levied for national development and the growth of domestic industry, said Union Finance Minister Nirmala Sitharaman.

Reacting to a query in defence of 100 per cent trade tariffs on some US imports, the finance minister said that tariffs are legitimate instruments.

"So, when you are at a stage of development when your own industry has to grow, you will tend to make sure that, as per the WTO norms, whatever is the trade tariff which you can levy... you will levy. So that is how it's been happening and it is consistent as I said with the WTO," she said during a post-budget interaction in the port city on Thursday.

Observing that trade tariffs prevailing today serve multiple purposes, such as protecting domestic industry, Sitharaman asserted that this protection will continue afterwards as well, and also emphasised on exports and the possibility of reaching newer markets.

Referring to the bilateral relationship between India and the US, she said the US will take care of its interests while India will keep its interests on top and negotiate with them to 'see how best we can take forward'.

Responding to reciprocal tariffs on India, the union minister noted that Commerce Minister Piyush Goyal is already in the US to discuss with the US Commerce Secretary and the United States Trade Representative (USTR). And based on those negotiations, Sitharaman said he will come back to take a call, adding that Goyal held extensive talks with stakeholders before heading to the US.

So, it is only as we progress through these negotiations we will be able to make an assessment, keeping Indians export interests in mind, she said.

According to Sitharaman, a lot of questions emerged in a meeting before the post-budget interaction as to how India will protect its export interests.

"At the moment, we are seized of the problem. The Commerce Minister is gone (to the US), therefore talking with the US (administrators)," she added.

Further, the finance minister promised that the central government would extend full support to the southern state's projects.