India-US trade deal
US India trade deal: If you are fond of powerful bikes like Harley Davidson, then there is a very good news for you. India and America have come very close to a trade deal, which can increase the presence of American vehicles on Indian roads. Under this new agreement, India has decided to reduce the heavy taxes imposed on American luxury cars and motorcycles. But Elon Musk’s hopes have been dealt a severe blow in this entire deal.
According to a government official, under this interim trade agreement being made between India and America, the import duty on conventional American cars running on petrol and diesel will be reduced significantly. Currently, India levies heavy taxes ranging from 70% to 110% on foreign cars, due to which these vehicles become far out of reach of the common buyer.
In the new regime, the duty on cars with engine capacity more than 3,000 cc (3,000 cc) will be reduced to 30%. However, this reduction will not happen immediately, rather it will be implemented gradually over the next 10 years. There itself Premium motorcycles like Harley Davidson Duty is being completely abolished. But Tesla has been kept out of this deal.
Why were the doors closed for Tesla?
The world’s richest man Elon Musk had been demanding the Indian government for a long time to reduce the import duty on electric cars, so that Tesla could enter. But electric vehicles have been completely kept out of this deal. The official has made it clear that at present no concession will be given for EV. This is like a big blow for Tesla, because the company was looking for a cheap entry in India. It is worth noting that in talks with the European Union (EU), India had talked about bringing the duty on electric vehicles up to 10%, but no such provision has been made in the deal with America.
What is America’s condition?
This agreement between America and India is not limited to cars only. There is also a big geopolitical aspect behind this. Recently, US President Donald Trump had given a statement that he will reduce the duty on Indian exports from 50% to 18%. But in return, America has a big condition that India will have to stop buying oil from Russia. This agreement is being considered a part of this coordination between the two countries.
Final approval may be given in March
India is the third largest car market in the world, but the number of imported cars here is very less. The main reason for this is the taxation system here, which has been kept very strict to protect domestic industries. Now this new deal will definitely create a little crack in that wall. According to officials, this agreement is expected to be signed in the month of March. As soon as both the parties put the final seal on it, the process of fee reduction will start.