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The Indian government does not want to convey the impression that it is protectionist, according to the top official in the finance ministry. This statement came after the government lowered import duties on high-end motorcycles, amid U.S. President Donald Trump's actions on tariffs. The remarks were made a day after Trump initiated a trade war by imposing sweeping tariffs on Canada, Mexico, and China, although India was not targeted. The finance secretary, Tuhin Kanta Pandey, stated that India does not want to increase its level of protection and that it does not want to give any signal that it is pursuing a protectionist approach. Trade and immigration issues are expected to be at the forefront when Indian Prime Minister Narendra Modi meets with Trump this month. India has been trying to appease the Trump administration after the U.S. accused India of maintaining very high tariffs that harm the prospects of American companies. The Trump administration has also raised the issue of undocumented Indians living in the United States, which India's foreign ministry has said it is discussing with U.S. authorities.
The government has reduced the tariffs on fully-built imports from 50% to 11% in the latest budget, according to Mr. Pandey. This move is intended to send the right message to the global market and support the local industry. The tariff measures are designed to initially assist domestic companies, but will be gradually phased out as these industries mature.