Rajat Sharma’s Blog |Tariff deal with America: Wait for all the details to come out

All the provisions of the India-US trade agreement are currently being finalized and all eyes are on the joint release to be issued by both the countries. Commerce Minister Piyush Goyal clearly said in Parliament on Wednesday that sensitive topics like dairy and agricultural products will be kept out of the agreement and this sector will get complete protection. Piyush Goyal also said that protecting the interests of Indians in the matter of oil is the top priority of the government. The details of this deal are yet to be revealed, but Piyush Goyal clearly said that in terms of exports, lower tariff has been imposed on India as compared to other countries.

The biggest thing about this deal is that the 50 percent tariff imposed by America on the export of Indian goods will now be reduced to 18 percent. Trump will also remove the 25 percent tariff which he had imposed on India for buying oil from Russia.

American experts are saying that India has made a much better deal than America. This is very good news for the mutual relations between the two countries and also for the rest of the world. American strategic expert Michael Kugelman said that it will take some time for the details of the deal to be revealed but he does not think that India will completely stop buying oil from Russia.

After Trump imposed tariffs in August last year, there was a major blow to the export of Indian goods, manufacturing sector, IT, leather and textile industry. Therefore, when Trump announced to reduce tariffs, it had a tremendous impact on the stock market. There was a huge rise in Sensex and Nifty. The rupee also strengthened against the dollar. On Wednesday, the price of one dollar was 90 rupees 28 paise, that is, the rupee strengthened by 1.3 percent against the dollar.

Richard Rossow, fellow at America’s Center for Strategic and International Studies, praised Prime Minister Modi for the deal with Trump. Rosso said that earlier whenever America used to put pressure, India used to bow down and accept America’s words, but this time Trump kept talking and Modi remained silent on India’s interests, it was beneficial, Trump himself called, announced withdrawal of tariffs, this has happened for the first time, this showed the world the strength of Modi and India.

What does the US trade deal mean? Those who said that America has become India’s enemy and Trump does not like Modi, they got their answer. One does not reduce a 50% tariff to 18% for one’s enemy.

Secondly, the whole world saw that Modi did not bow down, did not get scared, the call for the deal was also made by Trump, not Modi. India remained adamant that there would be no compromise on agricultural products and no compromise was reached. As far as oil is concerned, India can still buy oil from where it will get a good price. India will increase imports from America, but slowly. Overall, this deal will prove helpful in India becoming the third largest economy in the world and India’s head will rise further in the world. (Rajat Sharma)

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