Stating that it is difficult to sign a BTA within the 90-day period for which reciprocal tariffs have been suspended, sources indicated that its form and structure may be decided in 90 days.
While India remains in continuous engagement with the US, EU, and the UK for FTAs, further negotiations may involve more visits by Indian officials abroad. Since Donald Trump’s assumption of the US Presidency, senior leadership from the EFTA countries, Israel, Qatar, and Sweden has already visited India to discuss further deepening of trade ties.On the variation in rates of the now-suspended reciprocal tariffs, sources added that the differential would have implied difficulty in computing the country of origin of products, which could have led to confusion.
With high reciprocal tariffs imposed by the US on China and lesser demand in many OECD countries, China is left with excess capacity and supply for exports and may look for other markets to expand its reach.
Sources indicated that India has already asked its Customs Department to track any extraordinary surge in exports or imports and has cautioned its industry that India will neither be a source nor a haven for trade diversion.
Sources further said that India has cautioned its industry to start looking outward in terms of trade and prepare for a low-tariff regime, adding that protectionism may save a thousand jobs but may cost 140 crore Indians dearly by breeding inefficiency.
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(Edited by : Anand Singha)
