New Delhi: Finance Minister Nirmala Sitharaman on Tuesday refuted claims labeling India as a “tariff king,” asserting that the country’s actual effective tariff rate is much lower than often portrayed. She highlighted that the Union Budget for 2025–26 has streamlined the number of tariff slabs to just eight, aiming to support domestic manufacturing and boost exports.
Responding to past remarks from the U.S., Sitharaman clarified that in India, tariff rates are subject to parliamentary approval, not arbitrary decisions. “For those still echoing the idea that India is a tariff king, it’s important to understand our system. We follow a legislative process for setting tariff rates,” she noted.
Speaking at the India Exim Bank’s Trade Conclave, she admitted that India’s complex tariff procedures may have contributed to a negative global perception of being overly restrictive. However, she pointed out that many of the higher tariff lines are not actually in force, and ongoing reforms are working to simplify the structure and improve India’s trade image.