The Indian government has pushed back against international criticism, branding it a “tariff king,” describing such claims as misleading and based on flawed statistics.
In a statement issued through the Indian High Commission in Abuja, the government argued that India’s tariff structure is consistent with global norms for developing economies and reflects both domestic priorities and international trade realities.
The Commission noted that critics often rely on India’s simple average tariff—15.98 percent calculated by giving equal weight to every product line. It stressed that this figure does not reflect the actual effect of trade tariffs.
Instead, it pointed to the trade-weighted applied tariff, which factors in import volumes and duties actually paid. By this measure, India’s average tariff stands at 4.6 per cent, placing it firmly within the global mainstream.
Tariffs, the Commission emphasised, are not imposed arbitrarily but serve two essential purposes in a developing economy: shielding emerging domestic industries from overwhelming global competition and providing a vital source of government revenue where tax systems remain underdeveloped.
Much of the criticism, it added, targets India’s higher duties in agriculture and automobiles, two strategic sectors tied closely to national interests.
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“Nearly half of India’s population depends on agriculture, which remains largely unmechanised and fragmented. Subjecting farmers to global competition, especially against heavily subsidised producers abroad, would be “not just risky, but potentially disastrous,” the Commission said.
It noted that India’s average agricultural tariff of about 33 per cent on products like dairy, cereals, meat, and fruits, it argued, is modest compared to international peers.
“The European Union, for example, imposes an average tariff of 37.5 per cent on dairy, with peaks of up to 205 per cent. Japan levies as high as 298 per cent on dairy and 258 per cent on cereals, while South Korea’s rates can reach 800 per cent on vegetables and 300 per cent on fruits.
“The automobile sector tells a similar story. India maintains elevated tariffs on imported vehicles, but officials said these duties underpin a thriving domestic industry that generates large-scale employment, fosters technology transfer, and strengthens the manufacturing base”, the Commission said.
According to the Commission, the tariff regime is liberal in sectors such as information technology and electronics, where most semiconductors, IT hardware, and computers enter duty-free.
“New Delhi also underscored the issue of reciprocity, pointing out that calls for greater access to Indian markets often come from countries that have themselves retreated from trade liberalisation,” it noted.
The Commission noted that the U.S., for instance, launched sweeping tariffs under the Trump administration, despite being one of the architects of the global trade order.
The Commission said, “criticisms of India’s tariff policies appear selective and one-sided. India cannot afford indiscriminate liberalisation at the expense of its farmers, industries, and long-term economic stability.”
