‘India set to be third largest economy’, says Piyush Goyal after Donald Trump’s ‘dead economy’ jibe; reiterates national interest important
Piyush Goyal said that India will protect its national interest while pursuing any trade deal.
Commerce minister Piyush Goyal on Thursday said that India will protect its national interest while pursuing any trade deal with world economies. Goyal’s comments in the Parliament come after US announced a 25% tariff on India. In what appeared to be a response to US President Donald Trump’s jibe that India is a ‘dead economy’, Goyal highlighted that the Indian economy will soon become the third largest in the world in terms of GDP size and is currently the world’s fastest growing major economy. He also said that in a span of few years India has gone from being the world’s 11th largest to the 5th largest.“In less than a decade, India came out of ‘Fragile Five’ economies and it has now become the fastest-growing economy of the world. On the basis of the hardwork of reforms, farmers, MSMEs and industrialists, we have come in the top 5 economies of the world from the 11th largest economy. It is expected that we would be the third largest economy in a few years. Today, global institutions and economists see India as a bright spot in the global economy..,” Goyal said.“Government is examining the impact of the recent events. Ministry of Commerce and Industry is holding talks with exporters, industries and all stakeholders and gathering information on their assessment of this issue. Government gives utmost priority to the safeguarding of welfare of farmers, labourers, entrepreneurs, industrialists, exporters, MSMEs and stakeholders of the industrial sector. We will take all necessary steps to safeguard our national interest,” he said in Parliament.Earlier today Trump shared on Truth Social, “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’s Stance on Trump’s 25% tariffs
A statement from the ministry of commerce and industry indicated that while trade talks continue with the US, India will not compromise on its national interest to seal a trade deal.Also Read | Donald Trump’s 25% tariff to hit India’s exports! Which sectors are at maximum risk? Top 5 points to know“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 commerce ministry release had said.“The Government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs. The Government will take all steps necessary to secure our national interest, as has been the case with other trade agreements including the latest Comprehensive Economic and Trade Agreement with the UK,” it added.
Are the 25% tariffs here to stay?
Trump has imposed 25% tariff on India, with chances of additional penalties because of India’s continued trade relations with Russia. “They have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE — ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST. THANK YOU FOR YOUR ATTENTION TO THIS MATTER. MAGA!,” Trump posted on Truth Social.Experts are widely seeing the Trump announcement has a negotiating tactic, especially given the fact that Trump has made several sharp attacks in a span of just a day. From calling India’s barriers ‘strenuous and obnoxious’ to threatening additional penalties on India for its oil and arms trade with Russia, Trump has gone all out in his attack on India. He has even spoken of India’s BRICS membership as a factor in deciding the tariff rate.Also Read | Explainer: What do Donald Trump’s 25% tariffs on India mean? What happens if they stay…Trump has said that deal talks with India are ongoing and the status on negotiations and the secondary penalty will be known by the end of the week.According to White House economic adviser Kevin Hassett Trump is ‘frustrated’ with India. “I think President Trump is frustrated with the progress we’ve made with India but feels that a 25% tariff will address and remedy the situation in a way that’s good for the American people,” he has said.
