Tariffs won’t hit defence deals with US, says MEA

{ HOUSE COMMITTEE TOLD

- Saubhadra Chatterji

Foreign secretary Vikram Misri on Monday told Parliament's panel on external affairs that India will not pause defence deals with the United States and underlined that both countries have a multidimensional relationship of which trade is a small part.

Government officials indicated to the panel that purchase of Russian oil will continue and that President Vladimir Putin's upcoming India trip or any possible trip of Prime Minister Narendra Modi to China are not part of any calibration but are pre-planned engagements.

In the first government briefing to a parliamentary panel after the US imposed 50% tariffs on India, commerce secretary Sunil Barthwal informed the panel that the sixth round of trade negotiations between India and the US is scheduled and the US has not called off the discussions to be held in New Delhi.

US President Donald Trump last Wednesday signed an executive order doubling India’s tariffs to 50% by announcing an additional 25% duties over Russian oil purchase. The additional 25%, due to take effect on August 27, puts India on a par with Brazil when it comes to facing the highest levy of 50%.

The commerce ministry also told the panel that as part of the export diversification strategy, focused efforts are being made to tap the potential of India’s existing trade agreements with partners such as the UAE, Australia, ASEAN, Japan, South Korea and Mauritius.