India’s market size draws US pressure, but benefits may not follow, says ex-WTO official

Former WTO Ambassador Jayant Dasgupta believes Donald Trump’s focus on India stems from the country’s vast market potential. According to Dasgupta, while there is pressure to further open India’s market, offering zero tariffs on thousands of items would likely bring limited benefits to the US due to the specific nature of its trade interests.In an exclusive interview with CNBCUS President Donald Trump said, “I think I am going to raise India’s tariffs substantially in the next 24 hours.” His threat came a day after he announced plans to impose significantly higher tariffs on India for buying Russian oil.
Yesterday, in a post on Truth Social, Trump accused India of financing Russia’s war in Ukraine by purchasing what he described as massive amounts of Russian oil.
India’s Ministry of External Affairs has already responded, calling the targeting of India unjustified and unreasonable. The ministry stated that India will take all necessary measures to safeguard its national interests and economic security.Dasgupta pointed out that India is not the only major buyer of Russian oil. China and Turkey also import significant volumes, yet neither has faced any threat of additional penalties or tariffs from the US.

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He noted that while Brazil imports smaller quantities of Russian oil, it is already subject to high tariffs. He also highlighted that the US continues to purchase items like low-enriched uranium, palladium, and fertilisers from Russia—raising questions about how such trade aligns with the claim of cutting off support to Russia’s war effort.

Former Commerce Secretary Anup Wadhawan pointed out that India isn’t alone in maintaining economic ties with Russia. “Even today, the European Union imports 20% of its gas from Russia. The US itself buys Russian fertilisers and other goods. So targeting India alone doesn’t make sense,” he said.

He emphasised that India, as a developing country, is balancing economic pressures and has long-standing ties with Russia. “India will take decisions based on national interest, just like the West does,” he added.

Responding to Trump’s claim that India is the “highest tariff nation,” Wadhawan said India’s average tariffs are in the moderate range—typically between 3% and 15%. In sectors like agriculture and dairy, higher tariffs exist to protect millions of low-income farmers, similar to how the US and EU heavily subsidise their own agricultural sectors.

The former Commerce Secretary argued that looking solely at goods trade presents a limited view of the overall economic relationship. When services, technology investments, and educational spending by Indian students in the US are factored in, the trade balance actually tilts in America’s favour. He maintained that it’s misleading to claim India is unfairly benefiting.

For the entire discussion, watch the accompanying video

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