Former Minister of Commerce, Anob Wadwan, said on Thursday, and rejected fears that America could regain its manufacturing feature, “Make in India” is not threatened by the new mutual tariff for the United States. “It is not as if that in India will be replaced now with the United States. This will not happen,” he said in an exclusive interview with Business Today Sodaharm Zarrabi.
According to Wadhawan, the American economy is simply unorganized to support industrialization on a large scale. “Any kind of manufacturers in his right mind will not find that the American environment is favorable today. Not because of factors such as high costs in the American economy, the work is expensive.
Wadwan’s comments came when Trump imposed a “mutual tariff” by 27 percent on Indian goods, citing the alleged India duties on American products. The former bureaucratic said that the new tariff system was not a great basis in actual commercial mathematics.
“The saying that India was receiving a 52 % tariff that has no basis in reality,” he pointed out. “The average definitions that were applied to American goods were about 12 percent. The American definitions were about 3 percent individuals. So there was a differentiation of 9 percent … but it adopted a completely strange and unexpected explanation and not based on reality.”
However, Wadhawan saw silver bars. He pointed out that many competitors of India, such as Vietnam, China, Bangladesh, Thailand and Malaysia, were beaten with higher definitions. The main sectors such as Pharma, Energy, copper and semi -connectors are also exempt. “Many of our electronic products such as Apple phones, where 80 percent of the value is the American IP, will also escape from the worst,” he said.
Wadhawan expects that customs duties will eventually hurt American consumers. “It is unlikely that there is a lot of a local offer response in the United States,” he said. “In Trump’s first period, when he imposed duties, the US local offer response was very weak and ended up with American citizens to pay more. The trade deficit has already exacerbated with China. This will happen again.”
Wadhawan suggested that Trump’s real goal is to use the customs tariff as a financial lever. “This is the only way to madness,” he said. “But it is a very ineffective way. Everyone will withdraw the negotiating table and then try to extract something from them.”
Thinking about the broader influence, Waduhwan said that the world has officially moved away from the standards of global trade specified under the World Trade Organization. “Even before this event, the global economic system has been abandoned as it was imagined under the World Trade Organization. This is to some extent the final nature of this abandonment,” he said.
He added that the global economy can now be divided into two regions: a high -conflict area around the United States and a low -conflict bloc composed of the rest of the world focus. “This is a large part of the global economy – it is 75 percent of the global economy. Economic activity will turn into this low tariff in the world region,” he said.
As for India, Wadhawan reduced fears of the long -term turmoil. “Our exports to the United States are only about 2 percent of our gross domestic product,” he said. “If we were the only duties facing, we would be concerned. But others are worse. The price and tariff will significantly absorb in a large part. We will feel some pain, but it will not be more burden.”
Waswan also explained that the Aatmanirbhar Bharat goals in India are still intact. “The United States is not a major manufacturing force and is not in a position that allows it to become one,” he said. “So manufacturing will not turn to the United States, where President Trump envisions this. India is not concerned about these steps that harm our goal of strengthening the industrial sector in India.”
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