- People closely following the fortunes of the Indian economy must be realizing how the nation appears not to be overtly affected by the tariffs imposed by the Donald Trump administration. While the whole world is feeling pressure in one form or another from the tariffs imposed on the global economy, the Indian government has managed to ensure the fastest GDP growth by pushing ahead with reforms on the domestic consumption front. The key point to consider here is whether domestic consumption alone would be sufficient when trade is under duress, with no end in sight for the ongoing negotiations between the two administrations. Most concerningly, Trump is further threatening to impose even more tariffs.
PC: Christophe Barraud
- What should be the pragmatic plan of action for the Indian leadership to not only preempt the potential further rise in the tariffs but also ensure our interests are not too compromised on the back of additional stress courtesy of the fast-evolving Iran situation? Instead of getting hit by Trump’s Iran tariffs, Indian leadership is well adviced to do what’s needed to get that trade pact with the US. Is Trump’s 25% tariff threat on Iran’s trade partners bluster? It may be because he hasn’t backed it up with an executive order. And so far, his fulminations on Truth Social don’t count as law. There’s also the precedent of his 25% tariff on buyers of Venezuelan oil, announced last March, that wasn’t enforced strictly. But India shouldn’t take his latest threat lightly.
PC: Outlook Business
- Not after seeing how he does what he wishes and goes after whomever he feels like. When he isn’t above hounding his own Fed Chief, it’s prudent to be cautious. As we know, India has borne a 25% penal tariff for buying Russian oil since August. It was patently unfair of Trump when China is by far the bigger buyer, and Türkiye and the EU import significant volumes as well. But with Russian oil, at least our savings were substantial, up to $26bn over 2022-25. From Iran, we have little to gain. Last October, it bought goods worth just $56mn from us, down from $79mn a year earlier. Other buyers can be found for the rice, tea, and other things we sell to Iran. There’s our stake in Chabahar port also, on which the US has waived sanctions till April.
PC: ABP Live – ABP News
- However, whatever its strategic value, the port has cost us only a few hundred million dollars overall, and we needn’t lose sleep over it. Besides, Iran’s brutal crackdown on protesters isn’t a good backdrop for showing solidarity. Not when the Trump admin has made a point of speaking for Iranian protesters and democracy. It can justify its actions under an Obama-era law called the Iran Freedom and Counter-Proliferation Act that requires countering Iran’s oppression of its people, and its use of violence and executions against pro-democracy protesters. Scores of protesters have already lost their lives. Indian interests should be protected. Thus, while Iran stews, let’s focus on doing that trade deal with Trump that’s almost a year overdue.
