Tariffs as revenue: Change in India's import duties lifted states' income

The last decade or so provides a nice base for studying the trends in government revenue from import tariffs of all types

Everyone these days is talking about tariffs. India has been accused of being a tariff king, suggesting that the country keeps its tariffs high. The United States President Donald Trump has levied additional tariffs of over 50 per cent on imports of most goods from India. Indian exporters are, obviously, worried and concerned.

 

But this piece is not about whether India’s tariffs are high. Nor is it about assessing the seriousness of the impact of higher tariffs on Indian exports. Instead, an attempt is being made here to evaluate the impact of tariffs on the exchequer by way of tax