India is currently assessing the impact of Donald Trump's America First trade policy, and doesn't see the need of immediate action on that front, according to people familiar with the matter.
Officials across ministries are in talks about the impact of Trump's tariff threats and new trade policies. They also view the US Trade Representative identifying countries for pacts as a positive for India, given the countries' longstanding trade relationship.
Officials also expect talks on obtaining export market access for Indian products, while they are also keeping an eye on the trade official appointments being made in the US.
The US is India's largest trading partner, with $119.7 billion worth bilateral trade in goods, with $77.5 billion in exports, and $42.2 billion of imports. India is in trade surplus of about $35.3 billion with the US.
Since his oath, Trump has sounded alarm bells across geographies, with moves like tariff threats to BRICS nations, pulling out of the global tax deal as well as the Paris Agreement.
According to trade expert Ajay Srivastava of GTRI, if Indian goods or services are targeted, India must respond firmly—something it has successfully done before.
"For instance, in March 2018, when the US imposed tariffs on Indian steel and aluminium, India countered by raising tariffs on 29 specific American products. This response was carefully calibrated to ensure that India collected equivalent revenue from US imports, as the US did from Indian steel and aluminium," he said.
While the Indian government has been largely optimistic, there's an element of caution as well.
Commerce and Industry Minister Piyush Goyal has said that Donald Trump is a "friend of India," and India-US friendship will only continue to blossom and grow further.
External Affairs Minister S Jaishankar called Trump 2.0 "an extraordinarily active administration" and said India's relationship with the US will go to a higher level.
Speaking to Bloomberg, Union Minister Ashwini Vaishnaw also added India is being looked at "as a trusted country" and that "trust will outweigh any of the negative impacts".
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
