As of 2022, alcoholic beverages imported from the United States had the highest tariffs among Indian imports. Tariffs on vehicles followed closely, reaching *** percent during the same period. However, import tariffs were recently increased on commodities like vegetable oils, automobiles, and alcoholic beverages.

The US is pressing India to remove high car import tariffs in upcoming trade agreements, a critical issue for automotive markets and US companies like Tesla.

As of 2022, dairy products faced the highest tariffs imposed by the United States among Indian exports. Footwear followed closely, with tariffs reaching nearly ** percent during the same period. However, the recent rise in tariffs put Indian exporters at a disadvantage, especially for commodities like seafood, dairy, diamonds, and electronics.

Historical chart and dataset showing India tariff rates by year from 1990 to 2022.

How Tariffs are Impacting the Economy

Tariffs have a profound impact on the economy by increasing the cost of imports and reducing the affordability of goods and services. As tariffs raise the price of foreign products, businesses face higher costs for materials and components, leading to increased production expenses. This increase in costs is typically passed down to consumers, causing inflationary pressures.

Businesses are also forced to adapt to changes in trade patterns, often seeking alternative suppliers or shifting production to countries with more favorable tariff rates. The result is often disruption in supply chains, with longer lead times and less predictable costs.

Additionally, tariffs can lead to a reduction in consumer demand as higher prices discourage spending. On a broader scale, the implementation of tariffs can slow economic growth by reducing international trade and investment flows, diminishing the efficiency of global markets, and creating a more fragmented trade environment.

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India Imports from United States was US$38.99 Billion during 2024, according to the United Nations COMTRADE database on international trade. India Imports from United States - data, historical chart and statistics - was last updated on July of 2025.

Tesla chooses not to produce EVs in India due to high tariffs, despite new policies attracting other global manufacturers.

India Mean Feed-in Tariff: Wind data was reported at 0.000 USD in 2019. This stayed constant from the previous number of 0.000 USD for 2018. India Mean Feed-in Tariff: Wind data is updated yearly, averaging 0.061 USD from Dec 2000 (Median) to 2019, with 20 observations. The data reached an all-time high of 0.091 USD in 2012 and a record low of 0.000 USD in 2019. India Mean Feed-in Tariff: Wind data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s India – Table IN.OECD.ESG: Environmental: Renewable Energy Feed-in Tariffs: by Sources: Non OECD Member: Annual.

The cheapest data tariff value was provided by BSNL at around *** rupees per gigabyte across India as of July 2024. However, Reliance Jio had the highest share in the number of wireless subscribers across the country during the same period.

India Length of Power Purchase Agreement: Geothermal data was reported at 0.000 Year in 2019. This stayed constant from the previous number of 0.000 Year for 2018. India Length of Power Purchase Agreement: Geothermal data is updated yearly, averaging 6.500 Year from Dec 2000 (Median) to 2019, with 20 observations. The data reached an all-time high of 25.000 Year in 2008 and a record low of 0.000 Year in 2019. India Length of Power Purchase Agreement: Geothermal data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s India – Table IN.OECD.ESG: Environmental: Renewable Energy Feed-in Tariffs: by Sources: Non OECD Member: Annual.

Tesla opens its first showroom in Mumbai, India, entering the market with imported vehicles amidst high tariffs.

United States Imports from India was US$91.23 Billion during 2024, according to the United Nations COMTRADE database on international trade. United States Imports from India - data, historical chart and statistics - was last updated on August of 2025.

India Mean Feed-in Tariff: Small Hydro data was reported at 0.081 USD in 2019. This records a decrease from the previous number of 0.081 USD for 2018. India Mean Feed-in Tariff: Small Hydro data is updated yearly, averaging 0.031 USD from Dec 2000 (Median) to 2019, with 20 observations. The data reached an all-time high of 0.081 USD in 2018 and a record low of 0.005 USD in 2001. India Mean Feed-in Tariff: Small Hydro data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s India – Table IN.OECD.ESG: Environmental: Renewable Energy Feed-in Tariffs: by Sources: Non OECD Member: Annual.

India Length of Power Purchase Agreement: Solar Photovoltaic data was reported at 0.000 Year in 2019. This stayed constant from the previous number of 0.000 Year for 2018. India Length of Power Purchase Agreement: Solar Photovoltaic data is updated yearly, averaging 25.000 Year from Dec 2000 (Median) to 2019, with 20 observations. The data reached an all-time high of 25.000 Year in 2016 and a record low of 0.000 Year in 2019. India Length of Power Purchase Agreement: Solar Photovoltaic data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s India – Table IN.OECD.ESG: Environmental: Renewable Energy Feed-in Tariffs: by Sources: Non OECD Member: Annual.

India Length of Power Purchase Agreement: Waste data was reported at 20.000 Year in 2019. This stayed constant from the previous number of 20.000 Year for 2018. India Length of Power Purchase Agreement: Waste data is updated yearly, averaging 20.000 Year from Dec 2000 (Median) to 2019, with 20 observations. The data reached an all-time high of 20.000 Year in 2019 and a record low of 0.000 Year in 2014. India Length of Power Purchase Agreement: Waste data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s India – Table IN.OECD.ESG: Environmental: Renewable Energy Feed-in Tariffs: by Sources: Non OECD Member: Annual.

India Length of Power Purchase Agreement: Marine data was reported at 0.000 Year in 2019. This stayed constant from the previous number of 0.000 Year for 2018. India Length of Power Purchase Agreement: Marine data is updated yearly, averaging 6.500 Year from Dec 2000 (Median) to 2019, with 20 observations. The data reached an all-time high of 25.000 Year in 2008 and a record low of 0.000 Year in 2019. India Length of Power Purchase Agreement: Marine data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s India – Table IN.OECD.ESG: Environmental: Renewable Energy Feed-in Tariffs: by Sources: Non OECD Member: Annual.

India IN: Mean Feed in Tariff For Wind Electricity Generation data was reported at 0.000 USD/kWh in 2019. This stayed constant from the previous number of 0.000 USD/kWh for 2018. India IN: Mean Feed in Tariff For Wind Electricity Generation data is updated yearly, averaging 0.060 USD/kWh from Dec 2000 (Median) to 2019, with 20 observations. The data reached an all-time high of 0.090 USD/kWh in 2014 and a record low of 0.000 USD/kWh in 2019. India IN: Mean Feed in Tariff For Wind Electricity Generation data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s India – Table IN.OECD.GGI: Environmental: Environmental Policy, Taxes and Transfers: Non OECD Member: Annual.