Vikrant Shekhawat : Feb 02, 2025, 09:00 PM
Donald Trump: India's Finance Minister Nirmala Sitharaman has taken some such decisions in the Union Budget 2024-25, which can benefit American traders. Among these, the reduction in custom duty is prominent, which is likely to have a direct impact on exports from America. Experts believe that this decision will benefit America in a big way in terms of trade.Effect of reduction in custom dutyAccording to the report of the Global Trade Research Initiative (GTRI), the government has cut custom duty on products like motorcycles and artificial elements that enhance taste. This decision will give additional benefits to American companies in exporting their products to India.However, former US President Donald Trump has criticized India's trade policy many times and has even called India a 'tariff king'. Despite this, these amendments made in the Indian budget can directly benefit American companies.How will American exports benefit?According to Ajay Srivastava, founder of GTRI, motorcycle exports from the US to India stood at around $3 million in FY 2023-24. Now the reduction in custom duty can help American manufacturers expand their reach in the Indian market.Srivastava also said that Donald Trump has long been criticizing India's custom duty structure, but this new change indicates a possible improvement in the policy. This will give American business an opportunity to expand in India.India-US trade relationsDuring April-November 2024-25, the US has been India's second largest trading partner, with $82.52 billion in trade. Earlier, the US was India's largest trading partner during 2021-24.India's strategy and global tradeThis decision makes it clear that India is moving towards facilitating trade, especially when the global trade environment remains tense. However, experts believe that it is still uncertain how much this reduction will change America's trade outlook towards India. Nevertheless, this move could further strengthen India's trade relations with the US.