Commerce and Industry Minister Piyush Goyal recently said India was looking at introducing a “border adjustment tax” on low cost imports from free trade partner countries, which will bring level playing field between such imports and locally produced goods.
The proposed tax is perfectly compliant with the World Trade Organisation’s (WTO) rules on multilateral trade, Goyal said in his address to industry leaders at the Economic Times Awards for Corporate Excellence, 2019, held in Mumbai recently. The proposal for a “border adjustment tax” came up from a domestic steel maker at a recent meeting on ‘Make In India’, the minister said.
Goyal emphasized that India’s trade policy rests on national interest as well as on the interests of its people and the industry, which will guide all government engagement with the rest of the world. New Delhi had held marathon talks in Bangkok at the beginning of November with 15 other nations to get favourable terms that will protect its domestic industry’s interests but subsequently walked out of the deal for the time being.