Rama Krishna Sangem
Prime Minister Narendra Modi and his team of ministers and economic advisers may have been taken aback by US President Donald Trump’s sudden, sharp and steep tariffs on India. But, they have finally decided to stand up to the mighty Trump on this issue. This is the picture we got a day after Trump announced on his Truth Social post that India will have to pay 25 per cent tariffs from August 1, plus some penalties for buying oil and defence equipment from Russia.
This announcement came as a shocker to the Modi government which was hoping for some kind of a mini or early harvest deal with the US in August. A US team of negotiators are expected for talks in New Delhi in the fourth week of August. Till then, we expected extension of deadline for a deal by August 1. But, Trump hasn’t waited fill then. Moreover, Trump’s harsh slap of tariffs came when the parliament is in session, much to the embarrassment of the government.
Commerce minister Piyush Goyal on July 31, Thursday said that India will protect its national interest while pursuing any trade deal with world economies. Goyal’s comments in the Parliament come after US announced a 25% tariff on India.
In what appeared to be a response to US President Donald Trump’s jibe that India is a ‘dead economy’, Goyal highlighted that the Indian economy will soon become the third largest in the world in terms of GDP size and is currently the world’s fastest growing major economy. He also said that in a span of few years India has gone from being the world’s 11th largest to the 5th largest.
“In less than a decade, India came out of ‘Fragile Five’ economies and it has now become the fastest-growing economy of the world. On the basis of the hardwork of reforms, farmers, MSMEs and industrialists, we have come in the top 5 economies of the world from the 11th largest economy. It is expected that we would be the third largest economy in a few years. Today, global institutions and economists see India as a bright spot in the global economy..,” Goyal said.
Government is examining the impact of the recent events. Ministry of Commerce and Industry is holding talks with exporters, industries and all stakeholders and gathering information on their assessment of this issue.
Farmers, labourers priority of India
Government gives utmost priority to the safeguarding of welfare of farmers, labourers, entrepreneurs, industrialists, exporters, MSMEs and stakeholders of the industrial sector. We will take all necessary steps to safeguard our national interest,” he said in Parliament.
Earlier today Trump shared on Truth Social, “I don’t care what India does with Russia. They can take their dead economies down together, for all I care. We have done very little business with India, their Tariffs are too high, among the highest in the World. Likewise, Russia and the USA do almost no business together. Let’s keep it that way, and tell Medvedev, the failed former President of Russia, who thinks he’s still President, to watch his words. He’s entering very dangerous territory!”.
India’s Stance on Trump’s 25% tariffs
A statement from the ministry of commerce and industry indicated that while trade talks continue with the US, India will not compromise on its national interest to seal a trade deal. That means, India will not do anything in a hurry to please Trump on the issue of tariffs. We will adopt a wait and watch stand till the US teams comes here for talks. Till then, our exporters will have to face the higher tariffs and put up with that.
