How India may gain from lower tariff rates
Published in The Indian Express | The Hindu Business Line | Hindustan Times | Business Today | April 2025
India’s comparatively lower tariffs offer a distinct advantage in attracting FIIs as cost-efficient destination. Lower tariffs directly reduce the cost of doing business, making Indian markets more attractive than high-tariff economies.
"In the short term, reduced tariffs can drive higher FII inflows, boosting market sentiment and liquidity. A favorable tariff structure signals a business-friendly climate, leading to immediate foreign capital influx and increased investor confidence. India’s lower tariffs not only drive short-term investment surge but also lay the foundation for long-term, sustainable growth" - Akhil Puri, Partner, Financial Advisory
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