India is prioritizing a trade agreement with the United States as its primary strategy to mitigate the impact of President Donald Trump’s newly implemented tariffs, Bloomberg reports, citing Foreign Minister Subrahmanyam Jaishankar.
Jaishankar, speaking at a conference hosted by CNN-News18 on Wednesday, stated that New Delhi had decided to “engage the Trump administration early on,” describing the relationship as “open” and “very constructive.” His comments mark the first official response from an Indian official since Trump’s reciprocal tariffs took effect, imposing a 26% tax on imports from India, one of the highest rates among major economies besides China.
Since a February meeting between Prime Minister Narendra Modi and President Trump, where both leaders set a fall deadline for an agreement, Indian officials have focused their efforts on negotiating a bilateral trade deal. Jaishankar acknowledged the uncertainty surrounding the direct impact of the tariffs.
Trump’s trade policies have shaken global markets, leading to significant losses in stock values. India’s NSE Nifty Index has declined by more than 5% this year and was trading 0.5% lower as of Wednesday afternoon.
Prime Minister Modi, who has actively fostered closer ties with the US, faces pressure from both political allies and opposition groups to safeguard protections for industries employing large numbers of low-income workers. The Swadeshi Jagran Manch, a trade body associated with Modi’s Bharatiya Janata Party, is urging the government to protect key sectors such as agriculture, dairy, and small-scale industries.
Despite the challenges, Jaishankar expressed optimism about reaching a trade deal with the US this year, noting that India has held more trade discussions with the US in the past six weeks than with European nations in the past two years.
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