New Delhi: The government on Wednesday said it is studying the implications of US President Donald Trump’s announcement to impose 25 per cent tariffs on Indian goods, along with a penalty from August 1 and it is still hopeful of concluding a fair, balanced and mutually beneficial bilateral trade agreement.
The government, an official statement said, will take all necessary steps to secure the country’s national interest, as has been the case with other trade agreements, including the latest with the UK.
Trump announced the imposition of a 25 per cent tariff on all goods coming from India, plus an unspecified penalty for buying military equipment and crude oil from Russia.
“The Government has taken note of a statement by the US President on bilateral trade. The Government is studying its implications,” the statement said.
It added that India and the US have been engaged in negotiations on concluding a fair, balanced and mutually beneficial bilateral trade agreement over the last few months.
“We remain committed to that objective,” the statement said.
“The government attaches utmost importance to protecting and promoting the welfare of farmers, entrepreneurs, and MSMEs. The government will take all steps necessary to secure our national interest, as has been the case with other trade agreements, including the latest comprehensive economic and trade agreement with the UK,” it added.
These remarks are important as India has hardened its stance on giving duty concessions to the US on agriculture and dairy sectors — a key demand of America in the trade talks with India.
India is seeking import duty concessions from the US for its labour-intensive sectors like gems & jewellery and others, besides auto parts.
The two countries are negotiating a bilateral trade agreement (BTA) from March with an aim to more than double the bilateral trade in goods and services to USD 500 billion by 2030 from the current USD 191 billion. So far five rounds of talks have been completed.
For the sixth round of talks, the US team is visiting India from August 25.
They are aiming to conclude the first phase of the agreement by fall (September-October) this year. The two sides are also looking at an interim trade deal before the BTA.
