New Delhi: Donald Trump’s decision to impose a 25% tariff on Indian exports and an unspecified “penalty” because of the country’s energy purchases from Russia couldn’t have been music to New Delhi’s ears. Not just that, the US President took a jibe by suggesting that India and Russia have “dead economies.”
On Thursday, Union Commerce Minister Piyush Goyal responded to Trump’s latest pronouncement on behalf of the Indian government.
Goyal hit back at Trump’s ‘dead economy’ jibe by highlighting that India is the fastest-growing economy in the world and poised to become the third-largest in the coming years.
“In just over a decade, India has rapidly transformed from being one of the ‘fragile five’ to the fastest growing major economy in the world. We have risen from the 11th-largest economy to one of the top five economies… It is also widely expected that we will become the third-largest economy in a few years,” Goyal said in Lok Sabha.
“Today, international institutions and economists see India as the bright spot in the global economy. India has contributed to almost 16% of global growth,” the minister claimed.
As for the 25% tariffs, the minister said the Centre is studying implications of the move and will take all necessary steps to safeguard India’s national interest.
“The implications of the recent developments are being examined by the government. The Ministry of Commerce and Industry is engaged with all stakeholders, including exporters and industry, for taking feedback on their assessment of 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,” Goyal said amid slogan-shouting by members of the Opposition parties.
In a post on hos social media platform Truth Social, Trump had written: “I don’t care what India does with Russia. They can take their dead economies down together, for all I care.”
It followed Trump’s announcement of a 25% tariff on all Indian imports, starting August 1, along with a penalty for India’s continued trade with Russia, particularly in crude oil and defence equipment. Trump also called India’s tariff regime “among the highest in the world”, and its trade barriers “strenuous and obnoxious.”
