NEW DELHI – Piyush Goyal, the Union Minister of Commerce and Industry, tried to assuage people’s anxieties over the current trade talks with the US on Thursday by telling them there was “no need to panic.” Just a week before, the Trump administration had put an extra 25% tax on Indian imports, making the total tax on some commodities a sharp 50%. The levies were said to be a punishment for India’s continued oil commerce with Russia.
Goyal told the news agency media that India’s relationship with Washington is still “very good,” even though there have been some trade problems lately. He said that there have been “a little bit of geopolitical issues” that have “overtaken” the trade talks, but he is still hopeful that the two countries can reach a bilateral trade agreement (BTA) by November, as their presidents have already talked about.
Goyal stressed that trade talks take time and don’t follow a fixed “timeline.” He emphasized that the talks need to be done properly, with an eye on the big picture. “You need to think about what you want in the future. He said, “Time will tell if it works out well in a short time or a long time.”
The new tariffs, which doubled the old ones on Indian imports, have caused a planned round of trade discussions to be put off. The American trade negotiators called off their trip to New Delhi, which was supposed to happen in late August. Now, the date for the sixth round of talks is unknown.
Goyal said that India would still protect the interests of its exporters and keep its “strategic autonomy,” even though this setback happened. He told industry leaders that the government is doing everything it can to lessen the effects of the tariffs. For example, they recently lowered the Goods and Services Tax (GST) on several commodities to increase domestic demand.
The minister’s statements come at a time when the Indian government is trying to diversify its economic partnerships and not depend too much on any one market. India has recently concluded free trade deals with Australia, the UAE, and the UK. It is also in advanced talks with the European Union and other countries.