India Better Positioned Than US Trade Allies Despite Trump’s Tariff Threat: GTRI

New Delhi, Jul 31 (KNN) President Donald Trump's announcement to impose a 25 percent tariff and penalty on Indian goods may appear severe, but India remains in a better position than nations that have signed trade agreements with Washington, according to Global Trade Research Initiative (GTRI).

The think tank made this assessment on Wednesday, arguing that India has avoided making the significant concessions that other countries have been forced to accept.

The think tank noted that countries including the United Kingdom, the European Union, Japan, Indonesia, and Vietnam currently face elevated tariffs despite having trade deals with the United States.

In exchange for these agreements, these nations have provided substantial concessions to Washington, including zero tariffs on American agricultural products, massive investment commitments, and pledges to purchase US oil, gas, and military equipment. India, by contrast, has made no such concessions.

GTRI Founder Ajay Srivastava emphasised that while Trump's tariff announcement appears harsh on the surface, a more detailed analysis reveals that India's position is not significantly worse than countries that have formal trade agreements with the United States.

He stressed that India engaged in negotiations in good faith but maintained firm boundaries, particularly regarding agricultural policy, which affects over 700 million livelihoods in the country.

The think tank challenged the justifications cited by the Trump administration for imposing tariffs on India, specifically regarding trade barriers and India's relationship with Russia.

Srivastava argued that India's tariffs comply with World Trade Organisation regulations, that non-tariff barriers are a common practice globally, and that India's purchase of discounted Russian oil has helped the country manage inflation during periods of global economic volatility.

The analysis concluded that India is not isolated in facing US trade pressure, with over 90 countries experiencing similar challenges. While the possibility of a future trade agreement remains open, GTRI suggested that any deal would need to be negotiated on equitable terms.

The think tank characterised India's firm stance as a success, arguing that it has prevented the country from entering into what it described as a one-sided trade agreement.

(KNN Bureau)