With the return of Donald Trump in the US, there has been a stir in global business equations. Trump has waged tariff war (fee war) against countries such as China, Canada and Mexico, causing an atmosphere of anxiety in many countries. Especially after warning to BRICS countries, discussions in India also intensified. However, according to the latest reports, India and the US are trying to resolve these issues through dialogue, which has reduced the chances of tariff war on India.
Strong trading relationship between India and America
In a conversation with Hindustan Times, a senior official said that India resolves the issues raised by its colleagues on priority and gives special strategic importance to the US. The official also said that no special business issue has been raised by Washington regarding India.
- America’s main dispute with Mexico and Canada is associated with illegal immigrants.
- The BRICS group (Brazil, Russia, India, China and South Africa) were warned by Trump, but the official says India is not part of the decision and the US-India relations are based on mutual belief.
- New Delhi is not considering any decision that affects relations with Washington.
India’s stand on Trump’s policies
Another expert said that after Trump’s return, India has indicated to cooperate with the US on illegal immigration and every issue related to business. However, Trump’s warnings of imposing 100% tariff on the BRICS group have definitely increased concerns on India’s possible impact.
Due to strong bilateral relations between India and the US, its impact on India can be limited. Prime Minister Narendra Modi discussed issues such as global peace and security during a conversation with Trump and made it clear that the partnership between India and the US is based on mutual trust and profit.
India does not have any immediate threat to American tariff
A third official told Hindustan Times that no tariff on India is a sign of threat from the US at present. However, if such a situation is created, India is ready to take every possible step.
- The purpose of changes made in custom duty is only to protect the business interests of India, not to give a message to a particular country.
- India believes in justified business relations and is its priority to support small farmers, dairy producers and small businessmen.
- India is still a developing country and the government cannot hold back from fulfilling its responsibility for the safety of the poor.
India made significant changes in the budget
The official also informed that the custom duty slab has been simplified in the budget, so that industries can be facilitated and import duty can be reduced. This decision has been taken to promote industrial development and maintain business balance.
