The Indian government indicated on Monday that it remained hopeful about negotiating a bilateral trade agreement with the United States despite recent turbulence. US President Donald Trump had imposed a 25% levy against Indian imports at the beginning of August — vowing to add an additional 25% later this month for its continued purchase of Russian oil. Officials have suggested that the Narendra Modi-led government is now working on support measures to insulate exporters in certain sectors from the full impact of the tariffs.
‘Optimistic about continuing trade deal talks’
According to a Reuters update, the Indian government has now told a parliamentary panel that it remained hopeful that bilateral trade talks with the US would continue. Sources also told told the publication that New Delhi viewed its ties with Washington as being “multi-dimensional” — involving security, trade and other aspects. The government also reportedly told the panel that it was not only looking at ties between the two countries through the prism of trade.
The assertion came days after President Donald Trump announced a steep 50% tariff on most imports from the country. The Ministry of External Affairs had issued a sharp rebuttal — calling the move “unfair, unjustified and unreasonable” and accusing the Trump administration of “targeting” Indian oil imports from Russia.
Govt mulls support measures to insulate exporters
An official told PTI on Monday that the government was working on support measures to insulate exporters in sectors such textiles and chemicals from the full impact of the Trump tariffs. The commerce ministry has reportedly held meetings with several export sectors — including steel, food processing, engineering, marine, and agriculture — to understand issues they may face due to high tariffs.
Exporters have sought financial assistance and affordable credit from the government to cope with the 25% tariff imposed by Trump earlier this month. They have also urged the authorities to extend fiscal incentives such as interest subsidy and extension of RoDTEP scheme (Remission of Duties and Taxes on Exported Products), RoSCTL (Rebate of State and Central Taxes and Levies), timely payment of dues, and a direct shipping line to the US. Sources told the publication that the ministry was presently considering these demands.
(With inputs from agencies)