Following the announcement of former US President Donald Trump about the new customs tariff targeting international exporters – including India – New Delhi analyzes the potential impact on its exporters while participating in a close dialogue with stakeholders in this field.
Senior officials confirmed that the government is in an active consultation with all the main Indian exporters to assess weaknesses in the sector and formulate an appropriate response to politics. A senior source said: “We are not continuing in retaliatory measures. We are experiencing an enlightened and strategic approach.”
Amid uncertainty, India sees silver lining. With Washington increasingly focused on the separation of China, India finds itself in a unique position of the leverage. “There is a clear advantage for the first engine here,” said an official involved in the commercial negotiations.
India is also working to open all options, including the mutual tariff system and Rolook in import duties, in the event of signs of distorting the market or the product is dumped by the third countries that look forward to redirect goods across India.
In the bilateral trade agreement that was widely discussed with the United States, officials repeated India’s commitment to a “fair, balanced and fair” deal. “This cannot be a unilateral arrangement. Our interests must be protected.”
Unlike some global reactions, India has made it clear that it will not join any reprisal commercial blocks such as ASEAN’s response mechanism. Instead, it focuses on exploring new partnerships, including potential free trade agreements (FTAS) with the Gulf Cooperation Council (GCC), Bahrain and Qatar.
An official added: “The destruction of demand is not a source of concern at the present time. The recent tax cuts in the United States, as well as reduce global energy prices, give us a space to negotiate with the position of strength.”
The accurate response of India indicates its intention to walk on a high line – protecting local interests while seizing a moment to deepen the strategic commercial alignment.
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