Calibrated tariff simplification a priority for govt: Ashwini Vaishnaw

A "calibrated" tariff structure simplification remains a priority for the Modi government, as it views exports as a key driver of the next phase of economic growth, Union minister Ashwini Vaishnaw said on Thursday, exuding confidence that India will sustain a 6-8% real expansion rate for years.

Highlighting a "change in the mindset" and growth strategy, the minister said: "Earlier, we were looking at import substitution-manufacturing for the domestic demand. Now, we are looking at 'Make in India, Make for the World'; we are looking at export-led growth as the next phase of growth."

The simplification of customs laws and procedures is also in the works, he added.


Vaishnaw was speaking on India's Economic Blueprint at the World Economic Forum in Davos.

His statement comes at a time when American President Donald Trump has threatened to impose extra import duties on countries with which the US has a negative trade balance. While China, Mexico and Canada could bear the maximum brunt of his tariff policies, given their massive trade surplus with the US, India may also face some heat, experts have cautioned.

The new strategy, Vaishnaw said, is already taking shape in industries, including pharmaceuticals, chemicals, garments and electronics.

India, however, will keep import tariffs in certain critical segments to protect local industry from dumping from overseas, he said.

"And that kind of calibrated approach is a better approach," he added.