No Carrots For India At The Moment In India-US Trade Deal, Says Former Indian Envoy
"There are no carrots for India at all in the stance that the US has adopted at present," the former envoy said.
India and the United States, locked in negotiations to hammer out a trade deal with before the July 9 tariff deadline ends, will need some "face-saving compromise", said Meera Shankar, former Indian envoy to the US, during a televised interaction with NDTV Profit on Wednesday.
"There are no carrots for India at all in the stance that the US has adopted at present", she said, adding that Trump's negotiating stance is that "I hold the stick, and if you open up, I won't use it".
Shankar believes that analysts who say that India can fill the vacuum which China may leave due to the US tariffs should have a re-think. "Those who are very confident that we can fill the space if China has higher tariffs... I think they need to take a realistic look at this," she said.
On other hand, Pramod Bhasin, chairman of Indian Council for Research on International Economic Relations, is of the opinion that most of what Trump says should be ignored and that tactical negotiations will suffice in securing a mutually beneficial trade deal.
He also added that India can help fill the vacuum that will be left by China by reducing tariffs on products that will not harm the Indian producers. "There are areas where we can reduce tariffs like whiskey, wine, walnuts. We can reduce tariffs to allow more American imports without damaging local producers."
Bhasin further believes that India is at a fairly advantageous position at this time, which, if it uses well, can really help the country accelerate its own exports to America for the gap that will be left behind by China.
