Co-operation is a sustainable goal worth fighting over, mutual benefit a glue

US wants India to eliminate trade barriers for American companies: Ross, He also alleged that India imposes very high import duties on goods like automobiles, motorcycles and agriculture products

“Our goal is to eliminate barriers to the US companies operating here including data localization restrictions that actually weaken data security and increase the cost of doing business,”

Data localization restrictions are not specifically targeted towards US companies, it is also for Indian companies they would also have to keep the data locally. Data localization efforts are not being undertaken by India only, other economies are also taking up these efforts. Data localization is the first basic step towards securing a new age commodity. In the same context, US companies are better off in terms of cost of doing business as they can afford spending on data localization than thier counterparts.

“India’s average applied tariffs rate is 13.8 per cent and that remains the highest of any major world economy, the very highest.”

Again, in general India has one of the highest tax rates across the world and that is due one very basic reason, the population. With respect to other major democratic world economies India has to support its vast democratic population. Despite this, India ranks lower than US in terms of Tax revenues (% of GDP), According to the 2017 IMF data the ratio for India was 17.76% and for US it was 20.89%.

“It has for example a 60 per cent tariff on auto, while the US has 2.5 per cent. It has 50 per cent tariff on motorcycles and 150 per cent on alcoholic beverages”

When the US decreased its tariff on auto its domestic auto industry struggled resulting in loss of jobs and what not. However, US could afford such job losses, for India these would be catastrophic. Furthermore, luxury auto users in India can and will afford high tariffs. Indian states like Gujarat and Bihar have undergone prohibition so things like alcohol and tobacco industries can afford taxation without loosing profits.

“Zero versus 20 per cent. That’s not a justified imbalance. These high tariffs undermine India’s goal of improving digital access and literacy,”

Please do not make mistakes of considering that only two economies exist in the world.