Overview

• India's 2025 Union Budget slashes import duties on high-end motorcycles, luxury cars, and smartphone components, benefiting American companies like Harley-Davidson, Tesla, and Apple.
• Finance Minister Nirmala Sitharaman emphasized that the tariff reductions aim to strengthen India's economy and manufacturing base, not as a direct response to U.S. trade policies.
• Import duties on motorcycles with engine capacities exceeding 1,600 cc were reduced to 30%, while tariffs on semi-knocked down and completely knocked down units were also lowered.
• The tariff changes are seen as a potential incentive for Tesla and other American companies to expand operations in India's growing electric vehicle and tech markets.
• India's move follows U.S. President Trump's criticism of India's high tariffs and comes ahead of a planned meeting between Prime Minister Modi and Trump to discuss trade and immigration issues.