The Indian government on July 30 reaffirmed its commitment to protecting and promoting the welfare of farmers, entrepreneurs and MSMEs. It also stated that it is presently studying the impact of the United State's decision to impose a 25-percent tariff along with an additional penalty on the country starting August 1.
“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 Indian government said.
The Indian government added that it will take all steps necessary to secure its national interest, as has been the case with other trade agreements including the latest Comprehensive Economic and Trade Agreement with the United Kingdom (UK).
US President Donald Trump on July 30 while announcing steeper tariffs on India, also imposed an additional, unspecified penalty against the country linking it to New Delhi's purchases of arms and energy from Russia.
"...Also (India), 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!" Trump said on Truth Social.
While India and the US are negotiating a first tranche of a Bilateral Trade Agreement (BTA) aimed at fall of this year, efforts to agree on a mini-version by August 1 to avoid steeper reciprocal tariffs have seemingly failed.
Negotiators from the American team are expected to visit New Delhi for another round of talks only in the middle of next month.
In February, India and the US set a bold new goal for bilateral trade – "Mission 500” – aiming to more than double it to $500 billion by 2030. The BTA is part of this mission.
Since then, both nations have held five rounds of talks to agree to a trade deal as part of this mission. But, divergences remain, especially on agriculture and dairy.
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