AS THE 10 per cent ‘baseline’ US reciprocal tariffs took impact Saturday, a prime authorities official stated India holds a comparative edge over different manufacturing opponents and likewise advantages from a first-mover benefit, having initiated commerce negotiations with the US early on.
The official stated that total demand within the US could also be affected by the brand new tariffs, however stated India’s low manufacturing prices and decrease commodity costs at present work within the nation’s favour.
Whereas the ten per cent baseline tariff took impact Saturday, particular person tariffs on different nations, together with India, are set to be efficient from April 9. US President Donald Trump introduced a 26 per cent reciprocal tariff on India, however increased tariffs on China, Vietnam, Thailand, and Indonesia — key hubs of producing exercise in Asia, triggering fears of dumping in India.
Addressing considerations about dumping because of a glut in Chinese language exports and the potential diversion of Chinese language merchandise to India, the official stated India is intently monitoring the scenario and can act “inside the authorized framework” to guard its home trade.
The Indian Specific had reported Saturday {that a} high-level assembly had taken place on the Commerce and Trade Ministry to evaluate the scenario with fears of a possible surge in imports within the backdrop of the reciprocal tariffs. “Essential motion might be taken. The Customs division and the Bureau of Indian Requirements (BIS) are vigilant,” the official stated.
Commerce negotiations
The federal government official reiterated that India is proactively negotiating a commerce cope with the US and that “all the pieces is on the desk”. Hinting that the US tariffs have accelerated the tempo of different negotiations, the official stated India is actively pursuing new markets and as many as seven Free Commerce Settlement (FTA) negotiations are at present beneath manner and that the India-UK deal negotiations are going “very properly”.
“FTAs take time. We’ve got to be affected person, not like a number of different nations who’ve reacted instantly,” the official stated in response to a query on India’s stance concerning US tariffs and the standing of commerce talks.
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The official stated the commerce deficit had performed a job within the US looking for US reciprocal tariffs, however emphasised that India will not be being focused as a foreign money manipulator. “India will not be a foreign money manipulator,” the official stated.
India recorded a commerce surplus of $36.8 billion with the US in FY24. Whereas Indian exports to the US stood at $77.5 billion, American exports to India amounted to $40.7 billion. Bilateral commerce between India and the US totalled practically $120 billion in FY24.
WTO pushes for extra partnership
WTO Director-Normal Ngozi Okonjo-Iweala on Friday inspired members to make use of WTO boards to interact constructively, search cooperative options, forestall commerce conflicts from escalating, and assist an open and predictable buying and selling setting.
Preliminary WTO estimates counsel that US tariff measures launched on April 2, together with others imposed for the reason that starting of the 12 months, may result in an total contraction of round 1 per cent in world merchandise commerce volumes this 12 months. This represents a “downward revision of practically 4 share factors” from earlier projections, Director-Normal Okonjo-Iweala stated.
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