India plans to lower import tariffs on electric cars, rejecting requests from local automakers to delay such cuts by four years, as New Delhi prioritises closing a trade deal with the United States, government and industry sources told Reuters.

The U.S. is India's biggest market for auto parts exports, making up almost a third of the $21.2 billion industry in the year ended March 31, 2024.

India plans to address Trump's reciprocal tariffs through a bilateral trade agreement, prioritizing tariff cuts for the US.