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COVER STORY FEBRUARY 28, 2025 | The Indian Eye 5

During the recent meeting be- Trump administration to impose re-
tween President Trump and Prime ciprocal tariffs on India, while point-
Minister Narendra Modi, the two ing that the move is a matter of ‘con-
leaders resolved to expand trade and cern’ for the whole world and will end
investment to make their citizens up disturbing the trade structure.
more prosperous, nations stronger, Former diplomat KP Fabian,
economies more innovative, and sup- while talking about US President
ply chains more resilient. Donald Trump’s address during the
They resolved to deepen the joint session of US Congress, said on
US-India trade relationship to pro- Wednesday that enforcing higher tar-
mote growth that ensures fairness, na- iffs is a matter of concern for India, as
tional security and job creation. To this well as the whole world. Fabian said
end, the leaders set a bold new goal for that the endeavor was ‘foolish’, as it
bilateral trade - “Mission 500” - aim- would bring the trade of the entire
ing to more than double total bilater- world down.
al trade to USD 500 billion by 2030. “This (enforcing higher tariffs)
Referring to the Mission 500 aim, should be a matter of concern for
Sahai said it would entail that India India and the whole world... It is a
will have greater facilitation of trade. foolish endeavor because other coun-
“Our Prime Minister has already trav- tries will impose tariffs on the Unit-
elled to the US. He talked about Mis- ed States, and world trade will come
sion 500 where we want to increase down... Inflation has started going up,
our exports from USD 200 billion to and the stock market has started go-
USD 500 billion, which also entails ing down in the US. Is this his way of
that we will have greater facilitation of making America great again?... He is
trade,” he said. dismantling the bureaucracy,” Fabian
“We will also be looking into that told ANI.
Indian products may be given a kind Union Finance Minister Nirmala Sitharaman (ANI) Further, talking about Trump’s
of free of duty treatment, and we can decision of banning transgenders in
also reciprocate by providing similar flows, and the “lower growth” decade native to China. women’s sports, he said, “Transgender
concessions to some of the US goods,” (FY11-FY20), when these factors sig- Meanwhile, India’s efforts to is the reality, there is no point in wish-
Sahai said, when Commerce Minister nificantly weakened. attract FDI in similar sectors have ing it away or being so cruel to them.”
Piyush Goyal is in US for trade-relat- During the second period, India’s lagged, despite its potential. Another Foreign Affairs ex-
ed discussions. “These kinds of nego- FDI inflows were less focused on mid- The report suggested that India pert, Robinder Sachdev, also criti-
tiations will definitely help.” to-low-tech industries, such as food could get a second chance if global cized Trump administration’s tariff
Goyal’s visit to the US follows processing, apparel, furniture, and supply chains are restructured again announcement, saying that though
Trump-Modi’s plans to negotiate the toys--sectors that are crucial for job under Trump’s leadership. With new Trump’s views are “correct in princi-
first tranche of a mutually beneficial, creation and export competitiveness. tariffs likely to be imposed on large ple”, it will disturb the structure of trade.
multi-sector Bilateral Trade Agree- The report analysis points out exporting nations like China, global While speaking to ANI, he said,
ment (BTA) by the fall of 2025. The that India did not benefit as much as businesses may look for alternative “In principle, what Trump is saying
two leaders had committed to desig- Southeast Asian nations, particularly production bases. is correct (about imposing recipro-
nating senior representatives to ad- ASEAN countries, from shifts in glob- This could open opportunities for cal tariffs) ... But this will disturb the
vance these negotiations. al supply chains during Trump’s first India to strengthen its position in mid- structure of trade... A matter of great-
India’s export growth has been presidency. Vietnam, for example, tech manufacturing and labor-inten- er concern for India is the tariff the
hampered over the past decade due made substantial gains in industries sive sectors. US could impose on steel and alumin-
to a combination of high import tar- such as electronics, apparel, and foot- But foreign affairs experts have ium exports... If it is increased, India’s
iffs and low foreign direct investment wear, positioning itself as a key alter- criticized the decision of Donald exports could decrease by 30-50 per
(FDI) in mid-tech manufacturing sec- cent... Trump’s strategy is to lower
tors, according to a report by HSBC. oil prices and reduce transport costs,
The report suggests that poten- which can help bring down inflation in
tial trade tariffs under U.S. President the US,” he said.
Donald Trump’s administration could Sachdev referred to Trump’s
serve as a catalyst for change, provid- targeting of India’s import duties in
ed India implements deeper reforms. speech to a joint session of Congress
It said “The combination of high on Tuesday. While addressing a joint
import tariffs and low FDI in mid-tech session of the US Congress, Trump
sectors has hurt India’s export poten- said that the reciprocal tax will kick in
tial over the past decade. One positive on April 2.
from the potential US trade tariffs is Speaking about Trump’s massive
that they could become a catalyst for crackdown on illegal immigrants, he
change, but reforms must run deep”. said, “There is no doubt that the steps
The study in the report exam- taken by Trump have decreased the
ines India’s economic performance rate of Illegal immigrants in the US...
over two distinct periods: the “high American agents are making a full
growth” decade (FY01-FY10), when show of arresting illegal immigrants to
the country experienced rapid eco- Union Minister of Commerce and Industry Piyush Goyal will be soon going to US and holding instill fear in other illegal immigrants
nomic expansion, increased global ex- talks with the government there (ANI) and to show the citizens of the US that
port share, and strong investment in- he is working on his campaign policy.”

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