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India Eyes Removal of Import Tax on U.S. LNG
In a strategic move to enhance energy trade and balance economic relations with the United States, India is reportedly considering scrapping the existing 2.5% customs duty and an additional 0.25% tax on U.S. liquefied natural gas (LNG). This decision, if implemented, could significantly boost LNG imports, making energy more affordable and accessible in India.
India’s trade surplus with the U.S. stood at $45.4 billion last year. By eliminating these tariffs, the Indian government aims to reduce this gap while fulfilling its commitment to increasing U.S. energy purchases by $10 billion, targeting a total of $25 billion in the near future. This policy shift is expected to benefit Indian industries reliant on LNG, contributing to economic growth and energy security.
Moreover, this initiative aligns with India’s long-term goal of transitioning toward cleaner energy sources and expanding its natural gas infrastructure. As discussions progress, industry experts anticipate a positive impact on energy pricing, trade relations, and the overall economy.
