The United States has asked India to scrap auto tariffs in a proposed trade deal but New Delhi is hesitant, sources told Reuters. The talks happen ahead of Tesla’s planned foray into the Indian market.
India’s car import duties can reach up to 110%, charging a high tax rate, to name a point of contention for Tesla Chief, Elon Musk. Earlier, EV giant had put on hold its India plans due to these tariffs but is now rethinking it as talks on trade talks keep going on.
Previous US President Donald Trump has lately condemned India’s car tariffs as excessive and to instigate countermeasures. The US call for zero or tariffs nothing upon nearly all sectors yet not in farming, in line with insiders capable of proof the issue. 
While India is reluctant to agree to full immediate tariff elimination, the government is nonetheless getting readying the domestic trade for the tougher situation. Last month, officials had also met local carmakers such as Tata Motors and Mahindra & Mahindra, who have expressed worries that lower tariffs could undermine domestic manufacturing investments.
Commerce Minister Piyush Goyal is currently in the U.S. where it is engaged in trade policy dialogue and likely to get more intense in a few months. Both countries hope to settle trade row and expand bilateral trade to $500 billion by 2030, paving way for big change in India’s automotive scene.
