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India and U.S. to remove additional tax on steel and aluminum products

Both India and America have decided to remove additional tax on steel and aluminum products. The two countries have agreed to create a joint monitoring mechanism to enable export of a minimum of 3.36 lakh tonnes of steel and Aluminum products from India to the US in a year without additional duty.

In 2018, America had imposed 25 percent duty on Indian steel products and 10 percent duty on aluminum products. He had cited national security for this decision, although there was no such thing. In response, India also imposed additional customs duty on the import of 28 American products in June 2019.

He said that if Indian exporters face any problem in sending steel and aluminum products to America, it will be brought to the notice of the Commerce Ministry and then the issue will be raised in the meetings of the Joint Monitoring Mechanism.

Additional duty has been imposed on the export of some steel and aluminum products from India to America. Piyush Kumar, additional secretary in the commerce ministry, said officials from the two countries will meet twice a year to make exports possible without additional duty.

Additional Taxes on Various Products in India & U.S.: A Comparison

CategoryIndia (Additional Taxes)United States (Additional Taxes)
Goods and Services Tax (GST)5%, 12%, 18%, 28% (applied to most goods and services)Sales Tax: Varies by state (average 5-8%)
Compensation Cess:1% – 20% (added to specific goods like cigarettes, tobacco, luxury cars)Federal Excise Tax: Specific goods like tobacco, alcohol, gasoline (varies by product)
Import Duty:Up to 100% (depends on product and country of origin)Import Tariffs: Vary by product and country of origin (average 3-10%)
State Specific Taxes:Some states levy additional taxes like VAT, luxury tax, entertainment taxState Specific Taxes: Some states levy additional taxes like alcohol tax, gasoline tax, sin taxes
Local Levies:Some cities/municipalities charge octroi, entry tax, etc.Local Levies: Some cities/counties charge sales tax, property tax, etc.

Top 10 Steel manufacturing companies in India

  1. Tata Steel
  2. JSW Steel
  3. Steel Authority of India Limited (SAIL)
  4. Essar Steel
  5. Jindal Steel
  6. Rashtriya Ispat Nigam Limited (RINL)
  7. MESCO Steel
  8. National Mineral Development Corporation (NMDC)
  9. VISA Steel
  10. Hindalco Industries
  11. Electrotherm India Limited
  12. Ratnamani Metals & Tubes Ltd.

Top 10 Aluminium manufacturing companies in India

  1. Century Extrusions Ltd.
  2. Hindustan Aluminium Company (HINDALCO)
  3. Vedanta Aluminium Limited,
  4. Jindal Aluminium
  5. Sacheta Metals
  6. National Aluminium Company Limited (NALCO)
  7. India Foils Limited
  8. Bharat Aluminium Company Limited (BALCO)
  9. Madras Aluminium Company Limited (MALCO)
  10. Indian Aluminium Company Limited (INDAL)
Who face trade deficit in U.S.-India trade?

The U.S. faced trade deficit of $45.7 billion with India in 2022.

How much is the U.S. and India trade value?

The total goods and services trade value of U.S. and India in 2022 was $191.8 billion. Exports were $73.0 billion; imports were $118.8 billion. The U.S. goods and services trade deficit with India was $45.7 billion in 2022.

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