"India Pursues Expansion of Non-Western Trade Markets in Response to Trump Tariffs"
In the face of escalating trade tensions, the Government of India is taking proactive measures to mitigate the impact of tariffs imposed by the United States.
The Commerce Ministry official has expressed a positive outlook, viewing every challenge as a new opportunity for diversifying exports. In particular, India is looking to strengthen its trade relations with Russia and China as an alternative to the US market.
According to the official, progress is being made in the ongoing negotiations with the US, and they hope to return to the table soon. However, the imposition of a 50% tariff on Indian goods by the US is currently in effect, and this has caused concern among Indian traders who are anticipating potential liquidity issues and slowing down of orders in the short run.
Despite these challenges, the official is confident that the additional tariffs will not have a significant impact on exports in the long term. They also emphasized the importance of creating resilient supply chains to minimize the impact of tariffs.
To support the industry, the Government of India is working on implementing suggestions from the industry to help alleviate the liquidity crunch and slowdown of orders. Additionally, the Export Promotion Mission (EPM) is being expedited to provide further support.
The US President Donald Trump has been pushing India to stop purchasing Russian oil and agree to a trade deal on America's terms. However, the official stated that addressing the additional 25% tariffs is necessary before negotiating the bilateral trade agreement (BTA).
The US President's threats have led the BRICS countries to work more closely together than ever before. In response to the US-India trade situation, India and China are looking to bridge their gaps and explore opportunities for cooperation.
In a positive development, India has indicated that it won't bow down to these demands and will continue to chart its own course in the global trade arena. The official's emphasis on creating resilient supply chains and diversifying exports suggests that India is taking a strategic approach to navigating these challenging times.
