India, US in talks to lower import duties on Harley-Davidson, Bourbon and Californian Wine
PTC Web Desk: India and the United States (US) are engaged in trade discussions to further reduce import duties on select American products, including Harley-Davidson motorcycles, Bourbon whiskey, and Californian wine, sources have revealed. The move aims to strengthen economic ties between the two nations while making these premium products more accessible in the Indian market.
The Indian government had earlier reduced tariffs on Harley-Davidson motorcycles from 50% to 40%, and talks are underway to lower them even further. Similarly, import duties on Bourbon whiskey, which had been slashed from 150% to 100% earlier, may see another cut. The US is also pushing for improved market access for Californian wine in India.
Beyond luxury goods, trade negotiations include discussions on expanding US exports of pharmaceutical products and chemicals to India. The US is keen to enhance its market presence in India's growing pharmaceutical sector, while India is looking for favourable terms for its exports to the US.
India’s pharmaceutical imports from the US have fluctuated in recent years. From Rs 2,26,728.33 lakh in 2020-21, imports surged by 78.8% to Rs 4,05,317.35 lakh in 2021-22 before dropping by 27.5% to Rs 2,93,642.57 lakh in 2022-23. The trend shifted again in 2023, with a 10.8% rise to Rs 3,25,500.17 lakh.
If implemented, the tariff reductions could make Harley-Davidson motorcycles more affordable in India, while lower duties on Bourbon whiskey and Californian wine could make them more competitive in the Indian liquor market. However, increased US pharmaceutical exports may pose challenges for Indian drug manufacturers, who play a crucial role in the global generic medicine industry.
- With inputs from agencies
