trump tariffs
Despite increasing tariffs by America, there has been an increase in exports from India to America. Commerce Ministry officials gave this information today before the Parliamentary Standing Committee related to the Commerce Ministry. There was a detailed discussion on India-US trade relations, tariff increase and its implications in the committee meeting. The meeting lasted for about two hours. The main agenda of the meeting was to evaluate India-US trade relations. Commerce Secretary Rajesh Aggarwal and several senior officials of the ministry appeared before the committee. The committee members asked many tough and technical questions to the Commerce Ministry. The members first raised the question that when India and America are considered “strategic partners”, then why is America taking action like increasing tariffs.
Serious questions were also asked regarding the impact on farmers. Members wanted to know what impact the US tariff increase has had on Indian agricultural products and how the government is planning to provide relief to the affected industries and farmers. The committee also sought information regarding the impact on textile, pharma, jute, cotton and gems and jewelery sectors.
Demand for Indian goods remains even after tariff
Commerce Ministry officials said that despite the increase in tariff, there has been an improvement in exports from India to America. He told the committee that compared to the April-October period last year, there has been an increase in Indian exports to the American market in the same period this year. Officials also clarified that the size of the Indian market is much larger than India’s export market, and domestic consumption remains the backbone of the Indian economy.
The committee members asked for an update on the India-US trade deal, but the Commerce Secretary did not give any clear answer on this. Members also raised questions as to why India does not get a “level playing field” in trade with the US, Russia and China. The complaint of exporters not getting equal benefits despite exemption on imports in many industries was also placed before the committee. In the event of not being able to immediately answer many important questions, the Commerce Secretary asked for 10 days’ time from the committee. The committee has directed to submit a detailed written reply in the next phase.
These people will attend the next meeting
The next meeting of the parliamentary committee will be on 16 December. Senior officials of many departments including the Ministry of External Affairs, Ministry of MSME, Finance Ministry, Agriculture Ministry, Commerce and Textile Ministry will be present in this meeting. Besides, FICCI, ASSOCHAM and other trade organizations will also be called, so that India-US trade relations can be discussed more comprehensively.