India will safeguard national interest, says Piyush Goyal after Trump slaps 25% tariff
Goyal also highlighted the strength of the Indian economy, emphasising that it is currently the world's fastest-growing major economy and is poised to become the third-largest by GDP.
New Delhi: Union commerce and industry minister Piyush Goyal on Thursday said that India will protect its national interest while pursuing any trade agreement. Speaking in Parliament a day after US President Donald Trump announced a 25 per cent tariff on Indian goods starting August 1, Goyal also addressed the additional US penalty over India's energy and defence ties with Russia.
In a statement delivered in both Houses of Parliament, Goyal said the government is closely examining the implications of the new tariffs and is in touch with all stakeholders to assess the situation.
"The government attaches the utmost importance to protecting and promoting the welfare of our farmers, workers, entrepreneurs, exporters, MSMEs, and all sections of industry. We will take all necessary steps to secure and advance our national interest," he said.
'India currently world's fastest-growing major economy'
Goyal also highlighted the strength of the Indian economy, emphasising that it is currently the world's fastest-growing major economy and is poised to become the third-largest by GDP.
"In less than a decade, India emerged from the ‘Fragile Five’ to become one of the top five economies globally. Thanks to reforms and the hard work of our farmers, MSMEs, and industrialists, we rose from being the 11th largest economy. Global institutions and economists now regard India as a bright spot in the global economy," he said, in what appeared to be a response to Trump's remarks calling India a "dead economy".
Earlier today, President Trump posted on Truth Social, saying: "I don’t care what India does with Russia. They can take their dead economies down together, for all I care. We have done very little business with India—their tariffs are too high, among the highest in the world. Likewise, Russia and the USA do almost no business together. Let's keep it that way, and tell Medvedev, the failed former President of Russia who thinks he’s still President, to watch his words. He’s entering very dangerous territory."
India-US engaged in prolonged negotiations
India and the US are currently engaged in prolonged negotiations over a potential trade deal. The key sticking point remains Washington's demand for India to open its agriculture and dairy sectors, an area New Delhi is unwilling to compromise on, citing its importance in providing employment and food security.
A statement from the ministry of commerce and industry mentioned that while India remains committed to trade negotiations with the US, it will not compromise its core interests. "The Government has taken note of a statement by the US President on bilateral trade. The Government is studying its implications. India and the US have been engaged in negotiations on concluding a fair, balanced, and mutually beneficial bilateral trade agreement over the last few months. We remain committed to that objective," the ministry said.
Meanwhile, White House economic adviser Kevin Hassett confirmed President Trump's growing impatience with India, saying: "I think President Trump is frustrated with the progress we've made with India but feels that a 25 per cent tariff will address and remedy the situation in a way that's good for the American people."