10 September 2026 (Navroze Bureau) : The United States and European Union have stepped up criticism of India’s trade policies, raising concerns over high tariffs and what they describe as non-tariff barriers that can make it difficult for foreign companies to access the Indian market.
The criticism comes as India faces growing pressure from major trading partners to reduce barriers, improve market access and create a more predictable environment for international businesses.
US Raises Concerns Over Indian Trade Barriers
The United States has repeatedly criticised India’s tariff structure, particularly duties on several American products.
Washington has argued that India’s relatively high import tariffs can make American goods less competitive in the Indian market. The issue has remained a key part of broader trade negotiations between the two countries.
US officials have also raised concerns about regulatory requirements and other measures that they say can function as barriers to American exporters.
EU Flags Non-Tariff Barriers
The European Union has similarly highlighted India’s non-tariff barriers, which can include technical regulations, certification requirements, standards, licensing procedures and other rules affecting imports.
The EU has argued that such measures can increase costs and make market access more difficult even when formal customs duties are reduced.
Trade Negotiations Under Pressure
The criticism comes at a time when India is seeking to expand trade with both the US and European markets.
Trade agreements are intended to improve access for exporters while reducing obstacles faced by businesses operating across borders. Differences over tariffs and regulatory standards, however, remain important points of negotiation.
Why Tariffs Matter
Tariffs are taxes imposed on imported goods. Higher tariffs can increase the final price of imported products and provide some protection to domestic producers.
India has historically used tariffs as one tool to support domestic manufacturing and encourage local production in strategic sectors.
However, trading partners argue that high duties can restrict competition and increase costs for businesses and consumers.
What Are Non-Tariff Barriers?
Non-tariff barriers are measures other than customs duties that can affect international trade.
They may include product standards, testing requirements, import licensing, labelling rules, certification procedures and other regulatory conditions.
Such measures can be legitimate when designed to protect consumers, health or the environment. Trade disputes can arise when another country believes the rules are unnecessarily restrictive or applied in a discriminatory manner.
India’s Trade Strategy
India has been pursuing a strategy that combines stronger domestic manufacturing with greater integration into global supply chains.
The government has promoted initiatives aimed at attracting investment and increasing India’s role in sectors such as electronics, pharmaceuticals, automobiles and advanced manufacturing.
At the same time, India has sought to protect sensitive domestic industries from sudden increases in imports.
Balancing Domestic Industry and Global Trade
The challenge for policymakers is to balance the interests of domestic producers with the need for competitive imports and greater access to overseas markets.
Lowering tariffs too quickly could expose some domestic industries to stronger foreign competition, while maintaining high barriers could make trade negotiations more difficult.
Impact on Businesses
For companies, differences over tariffs and regulations can influence sourcing decisions, production costs and investment plans.
Greater clarity and harmonisation of standards can reduce compliance costs, while unpredictable trade rules can make it harder for companies to plan long-term investments.
A Key Issue in India’s Global Trade Relations
The criticism from Washington and Brussels highlights the growing importance of trade policy as India expands its economic engagement with major global markets.
How India responds to concerns over tariffs and non-tariff barriers could influence future trade negotiations and the country’s efforts to deepen integration with the US and EU.10 September 2026 Punjab Khabarnama Bureau :