Union Commerce and Industry Minister Piyush Goyal expressed optimism on Thursday regarding the future of India’s relationship with the United States under the new administration of President Donald Trump. He referred to Trump as a “friend of India,” and affirmed that India’s ties with the US had only strengthened over the years, and there was no reason to expect any significant setbacks following Trump’s takeover.
Goyal’s comments come amidst concerns that the new US administration might impose tariffs on Indian goods. However, he cautioned against jumping to conclusions and suggested that India should wait for the official stance of the new government. Reflecting on his experiences with previous US administrations, including those of Barack Obama, Donald Trump, and Joe Biden, Goyal noted that India’s relationship with America had only improved with time.
“We need not jump the gun and let the new government take charge and express their formal and official view. To the best of my understanding of the situation and my own experience with Trump’s administration, I do not foresee any problem whatsoever,” Goyal told reporters during a briefing.
Concerns over potential tariff impositions on Indian products had risen after Trump’s previous remarks. During his tenure as President, Trump had labelled India as the “biggest tariff charger” and hinted at imposing reciprocal tariffs. Furthermore, during his 2020 election campaign, Trump had proposed tariffs ranging from 10-20 per cent on imports, with a particularly sharp 60 per cent levy on Chinese goods. Given that India is a major trading partner of the US, it was expected that India might face its own share of such adjustments, which could disrupt the existing trade balance that, as of FY24, showed a surplus of $35.3 billion in India’s favour.
Despite these concerns, Goyal remained positive about the situation. He pointed out that soon after his electoral victory, Trump made no mention of India when he announced plans to impose a 25 per cent tariff on all goods from Mexico and Canada. Additionally, he revealed that Trump was considering a 10 per cent tariff on Chinese imports until China took action against the smuggling of synthetic opioids like fentanyl. India, in this instance, was not named in Trump’s tariff proposals.
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On India’s export front, Goyal expressed confidence in the country’s performance despite ongoing global challenges, including geopolitical tensions stemming from the Red Sea crisis and multiple regional conflicts. He said that India’s goods and services exports were poised to exceed $800 billion in the fiscal year 2025. He also reassured exporters that the government was open to exploring new policies that would support their growth, provided these were in compliance with global trade rules.
The Minister also highlighted India’s progress in manufacturing, particularly with regard to the government’s flagship Production Linked Incentive (PLI) scheme. Goyal explained that the scheme had already attracted investments worth Rs 1.5 trillion, a clear indication of its success. However, he acknowledged that some beneficiaries under certain schemes, such as those for solar photovoltaic modules, batteries, and technical textiles, were taking longer to claim their incentives. He stressed that the slow pace of incentive payouts should not be seen as a failure of the scheme, as these sectors often require longer gestation periods before benefits materialise.
In conclusion, while there are a few challenges on the global front, Goyal’s comments indicate that India remains optimistic about its relationship with the United States under the Trump administration. The Union Minister’s reassurances highlight a continued commitment to boosting India’s exports and manufacturing while navigating any potential trade policy changes from the US.
