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New Delhi — India is open to offering easier market access for US firms if Washington reciprocates under president-elect Donald Trump, who has long called out New Delhi for its high tariffs, sources aware of the matter said.
Trump, who made a stunning political comeback four years after being voted out of the White House, recently labelled India a “very big abuser” of trade ties, vowing to raise tariffs on all imports by the US during his campaign.
During his first term as president in 2017-21, Trump warred with the South Asian nation over tariffs but shared a healthy relationship with Prime Minister Narendra Modi.
Closer to the end of his time in the White House, India and the US agreed to negotiate a limited accord, in an effort to bridge their differences.
“India is open to lowering tariffs for entry of US companies if that means better trade terms for Indian goods,” said one of the sources aware of the government’s thinking, who spoke on condition of anonymity.
The South Asian nation could lower import tariffs in sectors such as automobiles, the source said.
“We had a fairly good convergence during his first term in office,” said Harsh Vardhan Shringla, who was India’s ambassador to Washington during Trump’s first term.
“I think his second term will be even better because the two sides have developed a certain amount of mutual understanding and respect, especially at the level of the leaders.”
India had almost concluded a mini trade deal during Trump’s first term but for the Covid-19 pandemic, the retired diplomat said. “So, there is a scope to conclude a free-trade agreement under Trump 2.”
New Delhi is not too worried about the fate of its trade ties with Washington in Trump’s coming term, the sources said, with China largely front and centre for his tariff threats.
Trump’s approach to trade matters is transactional, which New Delhi believes helps in talks, another source, who is a senior government official, said days before Trump won the election.
India’s external affairs and trade ministries did not immediately reply to emails seeking comment.
Modi, who flaunts warm ties with Trump, was of one the first world leaders to speak to him after his historic win. Despite criticising India on trade, Trump called Modi “fantastic” during his campaign.
The Indian leader also had good relations with Democratic presidents such as Barack Obama and Joe Biden.
The White House rolled out the red carpet for him last year, touting deals on defence and commerce as Washington increasingly views New Delhi as a counterweight to China’s growing regional influence.
Regardless of who occupies the White House, trade ties between the two nations have grown steadily over the past decade.
The US is India’s top export destination, with goods and services exports of $120bn in 2023.
Reuters
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