NEW DELHI, Feb 3 (Reuters) - India does not want to give
any signal that it is protectionist, the top bureaucrat in the
finance ministry said, after slashing import duties on high-end
motorcycles, amid U.S. President Donald Trump's moves on
tariffs.
Sunday's remarks came a day after Trump ignited a trade war
with sweeping tariffs on Canada, Mexico and China. None were
aimed at India, although Trump had called it a tariff abuser
during his election campaign last year.
"We don't want to give anybody any signal that we would like
to be protectionist," Finance Secretary Tuhin Kanta Pandey told
Reuters. "Our stance is that we don't want to increase
protection."
Trade and immigration issues will take centrestage when
Indian Prime Minister Narendra Modi meets Trump this month.
India has been trying to placate the Trump administration
after it accused the South Asian nation of maintaining very high
tariffs that hurt prospects for American firms.
Trump's administration has upped the ante by recently
raising the issue of undocumented Indians living in the United
States, a topic on which India's foreign ministry has said it is
in dialogue with U.S. authorities.
India slashed custom duties on motorcycles with engine
capacity of 1,600 cc or more to 30% from 50% on fully-built
imports in Saturday's budget, which Pandey said also cut its
average level of tariffs to 11% from 13%.
"We should give the right signal for the world, as well as
to our own industry," Pandey added, saying the tariff measures
aimed at helping domestic companies initially but would be
phased out as those industries developed.