Why India should not lower tariffs on auto imports: Explained

As global trade tensions rise, India faces increasing pressure to lower tariffs on imported automobiles, particularly from the United States. However, such a move could significantly harm the domestic automotive industry, which has flourished under protective tariff policies. According to experts, India’s high tariffs on automobile imports have played a crucial role in fostering a robust domestic automobile industry. These protective measures have attracted significant foreign direct investment, led to job creation, and helped develop a strong auto component sector.

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