Global trade relations are never simple, and India now finds itself navigating one of its biggest challenges the impact of US tariff on its exports. While concerns are mounting, Commerce Secretary-designate Rajesh Agrawal has assured that India remains committed to pushing forward with a trade deal, but only if it truly serves the interests of both nations.
India’s Clear Message to the US
Speaking at a round-table discussion organized by the Gulati Institute of Finance and Taxation (GIFT) and the Kerala State Planning Board, Agrawal underlined that ongoing discussions with the US are focused on ensuring fairness and mutual benefit. He stressed that India’s priority is to safeguard industries that are sensitive to export markets, ensuring they can continue to thrive while leveraging opportunities in the United States.
Why the Tariff Dispute Matters
Agrawal revealed that nearly 55% of Indian exports to the US are likely to be affected by the newly imposed 50% US Tariff. This includes a 25% “penal tariff” linked to India’s decision to import oil from Russia. Calling the move “unfair and unreasonable,” he pointed out that countries like China purchase even more Russian oil, yet are not being penalized.
The statement reflects India’s frustration at what it sees as a double standard in global trade practices.
India’s Plan to Soften the Blow
Despite these hurdles, the Indian government is not standing still. Agrawal explained that the Centre is actively collaborating with industries to explore new export destinations, diversification of markets, and strengthening domestic demand. These strategies are designed to minimize the negative impact of US policies and ensure Indian businesses remain competitive on the world stage.
Confidence in India’s Growth Story
Even with the global headwinds, Agrawal expressed optimism about India’s economy. He highlighted that the country’s growth trajectory remains robust, driven by strong fundamentals and an adaptive policy framework. India’s long term strategy, he noted, is about creating balance protecting its industries while also building stronger international partnerships.
The Road Ahead
As trade negotiations unfold in the coming weeks, India’s position remains clear: any agreement must be a genuine win win situation. The government’s priority will continue to be defending national interests, supporting its industries, and ensuring that global trade works on fair and equal terms.
Disclaimer: This article is based on information from official statements and public reports. It is meant for general informational purposes only and should not be treated as policy or legal advice.
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