Import concessions

Trade agreements should focus on overall gains

To clinch a free-trade agreement with the UK, India has reportedly proposed a reduction in import duty on electric vehicles (EVs). The UK’s demand for import concessions on EVs remains one of the few outstanding issues in the free-trade talks. Recently, US-based Tesla also proposed setting up a factory in India but has asked for lower import taxes in return. Reduced tariffs will enable foreign EV manufacturers to seek a foothold in the Indian market. Expectedly, domestic auto manufacturers are opposing the government’s proposal to open up the market even if it is done in a phased and calibrated manner.