Rama Krishna Sangem
Union Commerce and Industry Minister Piyush Goyal on Thursday said India was looking forward to start talks with the new administration in the United States under Donald Trump, who the minister said was a “friend of India” and the country’s ties with the US were only getting better with time.
The Union minister’s comments come amid apprehensions that the new US administration may impose some tariffs on Indian goods. But Goyal said that there was no need to jump the gun. Over the last 10 years — across Barack Obama, Donald Trump and the Joe Biden administrations — India’s relationship with America has only got better with time.
We need not jump the gun and let the new government take charge and express their formal and official view. To the best of my understanding of the situation and my own experience with Trump’s administration, I do not foresee any problem whatsoever,” Goyal told reporters in a briefing.
In October, Trump had termed India as the “biggest tariff charger” and has threatened reciprocal tariffs. During his campaign, Trump had proposed tariffs between 10-20 per cent on imports across the board, with a particularly steep 60 per cent levy on Chinese goods. India, as a major trading partner of the US, was expected to face its own share of these adjustments, potentially altering the balance of trade, which remains in India’s favour with a surplus of $35.3 billion in FY24.
Tariffs not on India
But soon after winning the US elections, Trump, in a social media post, said that he would sign an executive order imposing a 25 per cent tariff on all goods from Mexico and Canada, and an additional 10 per cent tariff on Chinese imports until the Chinese government curbs the smuggling of synthetic opioid fentanyl.
Union minister Goyal also said that he expects India’s goods and services exports to surpass $800 billion in the current financial year 2025, despite the geopolitical challenges due to the back-to-back wars as well the Red Sea crisis.
He said that the government was also open to any suggestion regarding any new policy support for exporters, provided it is compliant to global trade rules. Talking about India’s manufacturing push, the minister said that the production linked scheme (PLI) has resulted in attracting investments worth Rs 1.5 trillion.
Although beneficiaries under some schemes are taking more time to claim incentives, the progress of the scheme is on track. This is because certain schemes such as solar PV modules, battery, technical textiles, have longer gestation period. As a result, the pace of incentive payout is not a measure of the scheme’s success, according to the minister.
