India Plans to Cut EV Import Tariffs as It Seeks Stronger Trade Ties with the U.S.

India is preparing to lower import duties on electric vehicles (EVs) as part of its efforts to strengthen trade relations with the United States, according to a report from Reuters.

This anticipated reduction in EV import tariffs is expected to feature in the early stages of a broader bilateral trade agreement currently being negotiated between New Delhi and Washington. The move reflects India’s strategic intent to advance its economic partnership with the U.S., particularly in the fast-growing clean energy and electric mobility sectors.

Two senior Indian government sources, speaking on condition of anonymity, confirmed the development but declined to specify the scale or timeline of the proposed tariff cuts.

Strengthening India-U.S. Trade Through EV Policy Reform

The planned tariff adjustments are seen as a proactive measure to facilitate greater market access for U.S. electric vehicle manufacturers while encouraging foreign investment in India’s green economy. By reducing barriers to entry, India aims to attract global EV brands and technologies that can support its sustainability goals and automotive transformation.

This policy shift also aligns with India’s broader ambition to decarbonise its transport sector, boost domestic EV adoption, and become a significant player in the global electric vehicle market.

Key Highlights:

• India to lower tariffs on imported electric vehicles.

• Part of a proposed India-U.S. trade agreement under negotiation.

• Officials confirm talks but details on tariff rates remain undisclosed.

• Move aims to support clean energy, green mobility, and foreign investment.
  
  
  
  (Sources: investing.com, reuters.com)