India’s Chief Economic Adviser V. Anantha Nageswaran has expressed optimism that the additional 25% tariff levied by the United States on Indian goods may soon be lifted. Addressing an event in New Delhi, he noted that the penalty, which came into effect in August, could be withdrawn before the end of November.
According to him, the reciprocal duties currently standing at 25% might also be brought down to a more manageable range of 10–15%. He emphasized that while this was his personal assessment rather than an official assurance, recent developments point towards a resolution within the next couple of months.
The steep tariffs have significantly raised costs for Indian exporters, with some products facing a combined duty burden of nearly 50%. Labour-intensive industries such as textiles, engineering goods, and certain food categories have been particularly affected, with margins under severe strain.
Indian officials have been in active discussions with their US counterparts to seek a negotiated settlement. While optimism prevails, it is also acknowledged that the timeline could be influenced by political considerations in Washington.
For exporters, the coming weeks will be crucial. A rollback of the penal tariff and reduction in reciprocal duties could restore stability in bilateral trade, offering much-needed relief after months of uncertainty. Until then, businesses continue to brace for multiple outcomes as the tariff talks unfold.