India may still be reeling under Trump administration’s decision to double the tariffs to 50 per cent, but its senior officials insist the high tariffs will not have any detrimental impact on the Indian industry.
Senior Indian diplomat, Dammu Ravi, while speaking on the matter on the sidelines of an event in New Delhi on Thursday, called it a “phase that we have to overcome”.
While the “unilateral decision” by the US to levy double the tariffs is “devoid of any logic or reason”, Ravi, who serves as the secretary for economic relations in the Ministry of External Affairs, called it a “temporary problem” that the country will face and find solutions to.
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“The negotiations [with Washington] are still going on, so we are confident that solutions will be found in due course of time in looking at mutually-beneficial partnerships,” he said.
Ravi said the Ministry of Commerce is leading the negotiations from the Indian side and that even in the past, they were “very close” to finding a solution.
“We were very close to finding a solution, and I think that momentum has taken a temporary pause, but it will continue," he said.
The two strategic partners – India and the US – have a complementary relationship, said the diplomat, underscoring the need for businesses and leaders on both sides to explore trade opportunities.
Having said that, Ravi added that “if the US becomes difficult to export to”, India will automatically look at other opportunities.
“The high tariff will not have any detrimental impact on the Indian industry. We are confident that the world will find solutions to it and like-minded countries will look for cooperation and economic engagement that will be mutually beneficial for all sides,” he said.
Whenever any country faces tariff "walls", said Ravi, it quickly turns its attention to new markets to trade with.
The Middle East, Latin America, Africa and South Asia are among the regions India will target for trade, he added.
Ravi said all countries are impacted by the tariff decisions being taken by Trump, but solutions will evolve for the challenges.
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