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Positive exchange of words in India-US trade dialogue raises hopes of tariff relief: Economists

By IANS | Updated: September 10, 2025 19:55 IST

New Delhi, Sep 10 Economists on Wednesday praised positive developments in the India-US trade talks, saying it has ...

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New Delhi, Sep 10 Economists on Wednesday praised positive developments in the India-US trade talks, saying it has sent a clear message to the world that India is a serious player.

They underlined that India's economy is growing and that it needs to be acknowledged as a vital component of international trade.

Economist Rajiv Sahu told IANS that US President Donald Trump’s recent remarks suggest he is keen on reconciliation, and the credit goes to Prime Minister Narendra Modi for taking a firm stand against the US while also exploring alternatives with Russia, China, and other countries.

"India has stood firm instead of yielding to US pressure, and it now appears that both countries can move ahead towards a trade agreement on reasonable tariff terms. At no cost can India be underestimated," Sahu said.

Economist Prabir Kumar Sarkar noted that trade talks between India and the US began in February 2025, when both PM Modi and President Trump expressed their commitment to increasing bilateral trade from $200 billion to $500 billion by 2030.

"In the last decade, India-US relations have strengthened significantly. The 50 per cent tariff imposed on India in August could have posed challenges, but Trump’s reference to Modi as a ‘good friend’ indicates hope for constructive solutions in the ongoing trade discussions," he added.

Sarkar expressed confidence that India would be able to resolve its export-related concerns through these negotiations.

Meanwhile, economist Gurcharan Das stressed the need for India to work towards reducing the 50 per cent tariff, pointing out that doing so would create long-term benefits for the Indian economy through stronger trade ties with the US.

At the same time, Chief Economist of Israel’s Finance Ministry Shmuel Abramzon welcomed the progress in the talks, remarking that Israel is pleased to see two of its close allies engaging positively.

"India has immense potential to become a truly developed nation. The country has valuable assets, skilled human resources, and an effective government capable of driving reforms," he said.

With strong international partnerships, India can position itself as a global economic powerhouse, he added.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

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