Nirmala Sitharaman Pushes for Stronger Trade Ties Between India and US
New Delhi (The Uttam Hindu): India is pursuing a "good" trade agreement with the United States to foster economic growth and ensure smooth supply chains, Finance Minister Nirmala Sitharaman said on Saturday. She highlighted the need for India to "move smartly" amid the growing global tariff war, especially to guard against the potential dumping of goods from countries facing higher US tariffs. At the same time, the country aims to protect domestic industries that rely on affordable imports.
Speaking at The Economic Times Awards, Sitharaman emphasized the importance of a robust trade agreement for India, stating, “Both sides should have ambition for a good treaty. No one can fault that.” She noted that as India works towards becoming "Viksit Bharat," or a developed nation, securing solid trade agreements is crucial for economic growth. "Everybody is concerned about the growth numbers," she added.
Sitharaman mentioned that significant efforts are required to strengthen India's exports across various sectors where there is potential. She expressed confidence that Commerce Minister Piyush Goyal, who recently returned from a week-long visit to Washington for trade talks, is committed to negotiating a deal that will meet India's ambitions. The trade agreement aims to double trade between India and the US to $500 billion by 2030.
On concerns about the dumping of goods due to US tariffs, the finance minister said India would need to safeguard against this issue by being "smart" in its approach. She explained that different sectors advocate for various responses, from completely halting dumped goods to a more calibrated response. "The government's task is to balance everyone’s interests," Sitharaman added.
The steel sector, for instance, has already requested safeguard duties to protect against increased imports, particularly from China, which has large inventories.
Addressing India's approach to negotiating free trade agreements (FTAs), Sitharaman emphasized that India's interests must come first. She criticized the "loose" language of certain FTAs signed by the previous government, which she said are now posing challenges. The Commerce Ministry is currently reviewing past agreements, including those with Japan, Korea, and ASEAN countries.
“Today our understanding is better for good negotiations,” she said, stressing that India's interests should always be the top priority in any trade agreement. “If you don’t negotiate for India’s own good, your negotiations won’t be taken seriously by the opposite side, as they are very clear about what they want. But can you not be as clear?”
Sitharaman also advocated for consulting with stakeholders throughout the negotiation process to ensure their inputs are considered.
In conclusion, India's trade strategy under the current government is focused on prioritizing national interests while securing trade agreements that will support economic growth and maintain the integrity of domestic industries.
