The Ministry of Commerce and Industry is set to conduct a comprehensive review of India-US trade relations this week. The objective of this review is to assess the progress made over the years and devise strategies to mitigate the potential impact of any future tariff increases.
Despite the recent threats of higher tariffs issued by the incoming US administration, Indian officials maintain an optimistic outlook. They assert that no significant bilateral issues exist that could trigger discriminatory tariffs against Indian exports. Nevertheless, the ministry plans to learn from the experiences of the previous administration and adopt a proactive approach to future trade negotiations.
During the recent US election campaign, the new US president-elect had criticized India’s import tariff policies, labelling the country an “abuser.” This rhetoric has raised concerns among Indian policymakers, who are now carefully monitoring the evolving trade landscape.
However, Indian officials believe that the unique dynamics of the India-US relationship may shield the bilateral trade ties from significant disruptions. The strong personal rapport between Prime Minister Narendra Modi and the US president-elect is seen as a crucial factor in mitigating potential trade tensions.
It’s worth noting that the US’s own tariff regime imposes substantial duties on various Indian exports, particularly agricultural products. This asymmetry in tariff structures could provide India with leverage in future trade negotiations.
Experts suggest that if the US administration’s tariff threats lead to renewed trade talks, India could seek concessions from the US in exchange for potential compromises. Such an approach would allow India to protect its domestic industries while also fostering economic growth.
