NewDelhi: The Indian Union Budget 2025 lowered import tax rates on high-capacity motorcycles from Harley-Davidson brands, making them more affordable to Indian buyers. The budget, delivered on Saturday, seeks to minimise American-Indian trade disputes by lowering import tariffs on motorcycles from the United States.
Per the updated budget, motorcycle buyers now face decreased import taxes at 40% for models with up to 1,600 cc engine capacity. The import duty reduction for motorcycles beyond 1,600 cc engine capacity reaches 30%, beginning from its initial 50% rate. The taxation rates for completely knocked-down CKD units were reduced from 15% to 10%, and semi-knocked-down SKD kits now face a 20% tax instead of 25%.
The lowered import tax creates positive price reductions for Harley-Davidson motorcycles in India, thus allowing potential growth of their sales network for new customers. The United States continues its dialogue about international trade with India because President Donald Trump wants Indian import tariffs for U.S. products to drop. During his previous statements, Trump noted he would take reciprocal actions against India when they imposed excessive taxes on American products.
The Ministry of Commerce records show India became the United States’ leading trading partner during the last financial year, thus demonstrating the vital nature of their commercial relationship. These tariff cuts serve as progress towards enhanced economic relations and balanced trade relations between the United States and India.
Through its budgetary policy, the government lowered import tariffs on high-capacity motorcycles, which should reduce Harley-Davidson bike costs and increase sales in the Indian market. This policy amendment creates opportunities for American motor manufacturers to expand their operations in the area due to India’s rising demand for premium motorcycles.