Virginia [US], August 27 (ANI): Former Foreign Secretary and Rajya Sabha MP Harsh Vardhan Shringla expressed optimism that India will be able to conclude a “satisfactory, mutually beneficial” Free Trade Agreement (FTA) with the United States, as 50 percent tariffs came into effect on Wednesday. He underscored the “close and special partnership” between Prime Minister Narendra Modi and former US President Donald Trump.
Contrary to reports suggesting that Shringla indicated an FTA was imminent, he clarified that he was “hopeful” about the possibility, highlighting that the Modi-Trump relationship could create a pathway for future cooperation rather than guaranteeing immediate progress.
Referring to the “Howdy Modi” and “Namaste Trump” events, Shringla noted that the bond between the two leaders was established during Trump’s first term. “One thing that I know is that President Donald Trump and Prime Minister Modi enjoy a very close and special partnership. It’s been evident in many of the meetings that I have been present in myself. That connection doesn’t come from today. It comes from President Trump’s first term in office when you had events like Howdy Modi and Namaste Trump,” he said.
Shringla added, “Hopefully, we will find a way to conclude a satisfactory, mutually beneficial Free Trade Agreement with the United States early rather than late, and that would certainly take us to the next step of the visit of President Trump to India.”
He acknowledged that India is working to minimize the impact of tariffs while exploring alternative markets. “We will be at the receiving end of 50 percent customs duties for goods exported into the United States from India. We are working on minimizing the impact. One way is to find alternative markets. We have Free Trade Agreements with Australia, the UAE, and the UK. We are close to concluding a Free Trade Agreement with the European Union. This means we can access different markets and have the opportunity to divert some of our exports in that direction,” Shringla explained.
Emphasizing India’s strong ties with the US, he said, “I believe in the relationship. We have the most comprehensive, multi-faceted relationship with the United States, more than any other country. The strength of that relationship is the values and principles that we share, which will see us through any ups and downs. We will undoubtedly see this through as well.”
Shringla welcomed the appointment of Sergio Gor as the next US Ambassador to India, describing it as a “positive step.” He also highlighted India’s growing capacity in critical technologies. “We are developing our own capacities, with collaboration with countries like the USA. We are developing a very strong semiconductor capacity. We are also undertaking a rare earth mission. We envision ourselves growing over the next 20 years. We have to prepare for the next stage, and critical and emerging technologies are a very important part of that,” he said.
Trump’s 50 percent tariffs on Indian goods came into force on Wednesday. According to a Global Trade Research Initiative (GTRI) report, exports in labor-intensive sectors could face a collapse of up to 70 percent. The report noted that US tariffs will impact 66 percent of India’s total exports worth USD 86.5 billion, amounting to USD 60.2 billion in goods, which will now face duties of 50 percent or higher.
Sectors expected to be most affected include textiles, gems and jewelry, and shrimp exports. On the other hand, around 30 percent of Indian exports to the US, worth USD 27.6 billion, will remain duty-free, primarily in pharmaceuticals, APIs, and electronics. (ANI)
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