Donald Trump has started a new kind of tariff war in the world. Mexico, Canada and China are becoming its victims and this blow may fall on India on 2 April. Donald Trump has announced to impose ‘tit for tat’ tariff on India from 2 April. Meanwhile, PM Narendra Modi has been seen praising Donald Trump. What is his plan?
While China has made all its preparations to avoid and deal with Trump’s tariff policy, it has announced to provide more pension and better medical facilities to prevent the export from falling. India’s approach is ‘wait and watch’.
PM Modi praised Trump
Here Trump is threatening to impose tariffs on India. Its deadline is also coming closer. Meanwhile, PM Narendra Modi has praised Donald Trump wholeheartedly. Recently, in Lex Friedman’s podcast, PM Modi said that President Donald Trump has come very well prepared for his second term. He has a clear roadmap to achieve his goals. He knows which strategic steps to take for this.
US President Donald Trump has on several occasions described India as one of the countries charging the highest tariffs in the world. However, despite this, he has often been seen praising PM Modi. In fact, Donald Trump wants India to take some steps that will benefit America in trade. At the same time, India should start buying more oil from America. Talks are also going on between the two countries regarding the trade deal.
What is PM Modi’s plan?
Meanwhile, India’s plan is clear. India wants Elon Musk to set up his Tesla factory here, bring investment which will generate employment. For this, India has even prepared a new EV policy with low tariff. However, Elon Musk needs the market here more than India, because his sales are continuously falling in big markets like China and Europe.
In India’s telecom sector too, Elon Musk’s Starlink has signed a satellite internet deal with Reliance Jio and Bharti Airtel. So, if seen in this way, the philosophy of this entire exercise is only and only business.
500 billion dollar trade
The leadership of India and America have put forward the vision of ‘India First’ and ‘America First’. Keeping this in mind, both the countries are moving forward towards making trade deals with each other. While India is taking very careful steps regarding the tariff war, China has started working actively to avoid economic turmoil.
After the meeting between PM Modi and Donald Trump in February, both the countries have agreed to do a trade deal in a phased manner. The target of both the countries is to take the mutual trade to 500 billion dollars by 2030. At the same time, India also has a plan to diversify its exports.
According to SBI Research, India’s exports may fall by 3 to 3.5 percent after the tariff. Therefore, India is also focusing on exporting to alternative markets. India has signed a total of 13 free trade agreements (FTAs) with countries ranging from the United Arab Emirates to Australia. Also, talks are going on with Britain, Canada and the European Union. At the same time, India also wants to diversify its crude imports. Therefore, it is sourcing it from different countries.
