The Indian Demand for Imported Fresh Apples: Effects of Tariff Reductions

Abstract

We estimated the impact of the Indian tariff on the demand for imported fresh apples from theUnited States. A 1% decrease in the tariff would increase the quantities demanded by 3.83%. If India eliminates the tariff on all imported fresh apples, total consumer welfare in terms of the imported fresh apple market will increase by $120 million yearly, 57% of the value of all fresh apples imported by India in 2015. This study adds evidence on the effects of tariff reduction on trade volume and welfare of consumers in the importing country.