Tariff is a legitimate instrument; India's current tariffs align with WTO framework: FM Nirmala Sitharaman

Finance Minister Nirmala Sitharaman said on Thursday that tariffs are a legitimate instrument of trade policy and that India’s current tariff structure is fully consistent with the World Trade Organization (WTO) framework.

Her comments come amidst growing tensions over US President Donald Trump's plan to impose reciprocal tariffs on India.

"Both countries will safeguard their interest and we will prioritise India's interests," the finance minister said while addressing an event in Andhra Pradesh.


Speaking at the event, Sitharaman further noted the importance of watching the ongoing trade negotiations between India and the US, particularly as Commerce Minister Piyush Goyal is in the United States to initiate discussions aimed at safeguarding India’s trade interests.

“Commerce Minister Piyush Goyal has gone to the US to initiate some discussions. He is working to protect the interests of exporters,” Sitharaman said. “We will have to see how the Commerce Ministry takes up negotiations with the U.S. to ensure that our interests are well-represented."

Though the threat of reciprocal tariffs by the US since President Donald Trump assumed office in January has raised concerns across multiple sectors in India, the finance minister stressed that the Indian government remains committed to defending its trade policies within the framework of global trade norms.