Trump 2.0: No need to worry yet, says Commerce Ministry

Whatever may be the Presidency, we are integrating our value chains and we are integrating the two economies through various agreements, says Commerce Secretary Sunil Barthwal. File | Photo Credit: PTI

The Commerce Ministry on Thursday (November 14, 2024) played down anxieties about Donald Trump’s re-election as the US President in light of his remarks calling India a “tariff abuser” just one notch below China, noting that trade ties have grown persistently since 2001 and both countries’ value chains have got more integrated seamlessly over the years and across different administrations.

Top trade officials termed some questions about the impact of the Trump 2.0 regime on India as ‘premature’ as Mr. Trump is still putting his team together and policy pronouncements would take time to play out, based on which the Center can assess the situation if warranted. However, over a period of time, both countries have seen greater integration in their trade and investment flows, they noted.

Amid wariness among analysts about the US turning increasingly protectionist and levying higher import tariffs, Commerce Secretary Sunil Barthwal emphasized that India’s exports to the US have grown steadily between 2001 and 2023, which coincided with the tenure of four US Presidents. India enjoyed bipartisan support in the US, he pointed out.

As per Commerce Ministry data, India’s pie in imports by America has risen to 2.8% in 2023 from 0.9% in 2001. Over this period, US imports from India have grown at a compounded annual growth rate or CAGR of 10.48%, compared to its overall imports that have grown at a CAGR of 4.76%.

“Whatever may be the Presidency, we are integrating our value chains and we are integrating the two economies through various agreements, including the India Pacific Economic Framework for Prosperity (IPEF) and bilateral mechanisms. We are able to have a sustained growth with the US,” Mr. Barthwal averred.