US Eyes Zero Tariff on Cars in India Trade Deal as Tesla Entry Nears, Sources Say
The United States wants India to eliminate tariffs on car imports under a proposed trade deal between the two nations, but New Delhi is reluctant to immediately bring down such duties to zero even as it considers further cuts. India's high auto tariffs will feature in formal talks for a bilateral trade deal that are yet to begin, paving the way for American electric vehicle maker Tesla, which is gearing up for an India launch. The EV giant last year shelved its plans to enter the world's third-largest car market for a second time.
- If successful, this move could mark a significant shift in India's approach to trade, potentially leading to increased foreign investment and competition in the country's domestic industries.
- However, what are the implications of zero tariffs on India's national security and ability to regulate its own automotive sector, particularly if foreign companies like Tesla gain access to such a large market?