From Tariffs to FTAs: How India plans to navigate US trade pressures

‘India is making efforts for a balanced and mutually advantageous multi-sectoral India-US Bilateral Trade Agreement’

- SIMONTINI BHATTACHARJEE

The government made it clear on Friday that its relationship with the United States continues to be an integral part of its foreign policy, even as it faces an increasingly tense period with regard to trade links with the new nation.

According to a ministerial response given to the Lok Sabha on Friday, India is making efforts for a balanced and mutually advantageous multi-sectoral India-US Bilateral Trade Agreement. It aims at resolving matters relating to tariffs as well as developing a structure for cooperation.

Although there are no immediate reactions from the government regarding retaliatory duties, it has maintained that all options remain open and that it would be compelled to undertake compensatory actions if necessary for safeguarding national economic objectives. Trade tension escalated as a result of the unveiling of various duties on trade by Washington in mid-2020 on account of national security and foreign policy considerations.