New Delhi: The government is considering lowering import duties on Harley-Davidson motorcycles, Bourbon whiskey, and Californian wine as part of ongoing trade discussions with the United States. The government had earlier reduced import duties on Harley-Davidson motorcycles from 50% to 40%. Now, discussions are underway to further lower the tariffs, making these premium bikes more affordable in the market.
Import duty on Bourbon whisky reduced from 150 % to 100% in the past, and officials are now considering another cut to promote smoother trade between the two nations. Californian wine is also part of the talks, with the US pushing for better access to the Indian market.
The trade negotiations are not limited to motorcycles and alcoholic beverages. Officials are also discussing the expansion of US exports of pharmaceutical products and chemicals to India. The US has been keen to increase its market share in India’s growing pharmaceutical sector, while India is looking to secure favourable terms for its exports to the US.
India’s imports of pharmaceutical products from the US have seen significant changes in recent years. In 2020-21, imports stood at Rs 2,26,728.33 lakh. This surged by 78.8% to Rs 4,05,317.35 lakh in 2021-22. If the proposed tariff reductions are implemented, Harley-Davidson motorcycles could become more affordable for domestic buyers.
Lower duties on Bourbon whisky and Californian wine could also make these products more competitive in the Indian liquor market. At the same time, increased pharmaceutical imports from the US could impact Indian drug manufacturers.