Prime Minister Narendra Modi’s visit to the United States to meet his 'friend' Donald Trump holds significant importance, particularly in light of the newly announced tariffs on several sectors. Though no direct tariffs have been imposed on India yet, the Trump administration has made it clear that reciprocal tariffs will be imposed on all countries that apply duties on goods imported from the United States. So the Modi-Trump meeting holds great importance to our exporters here at home.
The US has always been India’s largest trading partner with trade accounting for almost $ 120 billion last year, whereas India ranks 10 in the list of US trading partners. Key Indian exports to the US include pearls, semi-precious stones, pharmaceuticals, chemicals, textiles, electrical machinery, mineral fuels and oils. While Indian goods account for only 2.7% of the total imported goods to the US , the widening trade deficit between the two nations has been a major concern for the United States.
With so much in play, we cannot afford to risk disruptions in its bilateral trade with its largest trading partner. Given the US President’s past dissatisfaction with India’s tariffs on US goods, it is likely that India will consider reducing import duties on select US products to maintain goodwill and ensure stable trade relations. At the same time, higher tariffs on China by the US, presents an opportunity for Indian exporters to expand their presence in the US market and present itself as an alternative to the US importers.
What I feel is that a balanced approach is essential to ensure that trade between India and the US continues to grow without any unnecessary disruptions. While we must safeguard our small and medium enterprises, we also need to address concerns raised by the US to maintain a strong economic partnership. Strategic negotiations that promote fair trade, tariff adjustments that do not disproportionately impact Indian businesses, and deeper economic collaboration will be key.
PM Modi’s visit presents an opportunity to reinforce our nation's position as a reliable trade partner all the while capitalizing on emerging opportunities in the shifting global trade landscape. The focus must remain on fostering a mutually beneficial relationship that supports long-term economic growth for both nations.
I invite your opinions.
