India must readjust its tariff structure in line with world, says commerce secretary Rajeev Kher

NEW DELHI:India must readjust its tariff structure in line with global norms to leverage regional trade pacts being negotiated, commerce secretary Rajeev Kher said on Wednesday.

The country has not been invited to become part of pacts such as the Trans-Pacific Partnership (TPP) and is "not in a position to join" partly because its tariffs are not competitive, he said at the announcement of the Foreign Trade Policy. India has among the highest average tariffs in the world at 14%.

"If the country is to stand up to these agreements, it's important that we start to address these issues," Kher said, while adding that India's access to markets was likely to erode when such pacts take effect.

India is in negotiations for a Regional Comprehensive Economic Partnership with 15 countries including China and Asean. Kher said India needed to lower tariffs for intermediate goods to help it further integrate with global supply chains, and that these industries would have to become more competitive.