India is being seen as an economic “bright spot” in the world : Piyush Goyal
NEW DELHI : India and Russia could “take their dead economies down together”, said U.S. President Donald Trump on Thursday (July 31, 2025). The criticism was among a barrage of statements targeting India by the U.S. President, who had earlier announced that he would levy 25% tariffs on Indian imports from Friday (August 1, 2025).
However, countering Mr. Trump’s statement, Commerce and Industries Minister Shri Piyush Goyal said India is being seen as an economic “bright spot” in the world.
In statements on social media and then while speaking to the White House press corps, Mr. Trump had lashed out at India for its ties with Russia, membership of the “Anti-American” BRICS, high tariffs, the “massive” trade deficit between India and the U.S., and for imposing the “most strenuous and obnoxious non-monetary Trade Barriers of any Country”.
“All things not good”, Mr. Trump wrote, adding that India would be paying a tariff of 25% from August 1, plus a penalty for buying military hardware and energy from Russia. Several hours later, on Thursday morning, he posted that India and Russia could “take their dead economies down together, for all I care”, adding that the U.S. and India “don’t do a lot of trade”. In 2024, the India and the U.S. conducted trade in goods and services worth $186 billion, with a surplus of $41 billion in India’s favour.
The U.S. is expected to start levying tariffs on countries around the world from Friday, and the government said it is examining the impact of the 25% tariffs as well as undefined penalties for India’s energy imports from Russia. The U.S. State Department also sanctioned six Indian companies and five Indian nationals for involvement in energy trade with Iran.
In a suo motu statement in Parliament on Thursday, Mr. Goyal said the government has been meeting domestic stakeholders, “including exporters and industry”, to assess the impact of the new tariffs. He added that the government attaches “the utmost importance” to protecting and promoting the welfare of India’s farmers, workers, entrepreneurs, exporters, micro, small and medium enterprises, and all sections of industry.
We will take all necessary steps to secure and advance our national interests,” he said. “The government is confident that we will continue our fast-paced journey of inclusive growth and sustainable development towards the goal of Viksit Bharat 2047. India is moving confidently towards self-reliance,” Mr. Goyal added, referring to India as one of the “top five economies of the world”, which is poised to become the third-largest.
In his statement, Mr. Goyal defended India’s record on trade agreements, highlighting that in an increasingly protectionist world, India had entered into a number of “mutually beneficial” trade agreements with the U.A.E., U.K., Australia and European Free Trade Association (EFTA) countries.
We are also committed to entering into similar trade agreements with other countries,” he added. “We are continuously working for the welfare of farmers and Indian agriculture so that food security and sustainable prosperity can be ensured.”
While the government has thus far maintained that it is continuing talks with U.S. negotiators over a Free Trade Agreement (FTA), which was launched by Prime Minister Narendra Modi and Mr. Trump during a meeting in Washington in February, the strong words from Mr. Trump appear to indicate serious differences between the two sides. In particular, the reference to “farmers and workers” indicates issues of market access on agricultural products, genetically modified products and dairy items, as well as labour protection laws being among the sticking points between them.
In addition, the U.S.’s growing closeness with Pakistan over trade issues in the aftermath of the Pahalgam terror attacks and Operation Sindoor could become another sticking point, as Mr. Trump announced that the U.S. and Pakistan had concluded a deal whereby Pakistan and the United States will work together on “developing their massive Oil Reserves”. In another jibe, he added that Pakistan may be “selling oil to India someday!” The Ministry of External Affairs declined to comment on Mr. Trump’s statements about the sanctions as well as Pakistan, and directed attention to the Commerce Ministry statements about the trade negotiations.
Source : The Hindu