NEW DELHI (Diya TV) — In a move to strengthen bilateral trade ties with the United States, India on Wednesday announced a series of cuts in tariffs and policy reforms intended to resolve long-standing trade tensions and promote increased cooperation between the two nations.
Among the major steps, India intends to withdraw the 6% equalization levy on digital ad services, also referred to as the “Google tax,” from April 1. The tax, which was initiated in 2016, had targeted international technology giants such as Google, Meta, and Amazon for income from online ads in India. The removal is expected to benefit these companies and is seen as a gesture to ease trade tensions with the U.S., which had criticized the levy as discriminatory.
Apart from tax reforms, India has also suggested lowering tariffs on several U.S. agricultural products such as almonds, cranberries, and bourbon whiskey. Reduction in duties on liquefied natural gas (LNG) is also under discussion to enhance energy imports from the U.S. and rectify the trade deficit.
The Indian government has also pledged to increase its energy imports from the U.S. to $25 billion from $15 billion in the last year. Additionally, India is considering the acquisition of advanced defense gear, including F-35 stealth fighters, indicating a strengthening of defense cooperation between the two countries.
These moves came after high-level talks between Indian Prime Minister Narendra Modi and U.S. President Donald Trump to tackle trade disagreements and increase economic ties. The two leaders have been optimistic about finalizing a trade deal that would balance tariffs and provide new opportunities for cooperation.
As talks continue, the two nations are negotiating greater market access and the lowering of trade barriers with the common objective of doubling two-way trade to $500 billion by 2030.
