New Delhi [India], August 29 : The 50 per cent tariffs imposed by the United States on Indian goods have raised concerns about trade relations between the two countries, but India remains confident of finding a way forward, said C.B. Ananthakrishnan, Former Chairman and Managing Director of Hindustan Aeronautics Limited.
Speaking to ANI, Ananthakrishnan said the immediate effect of the new duties could slow down certain sectors but stressed India's resilience.
"The present situation is that there has been an additional tariff which has been issued, which will for a shorter period it may have an impact. But I am sure that with the sort of governance and with the sort of resiliency the country's economy has got, we will be able to overcome that. And I am sure that in the days to come, we will find a solution and we will be able to sort it out," he said.
The steep 50 per cent tariffs imposed by the United States on Indian goods are largely a result of President Donald Trump's "personal pique" at not being allowed to mediate in the India-Pakistan conflict, according to a recent report by American multinational investment bank and financial services company Jefferies.
The report said the American president had reportedly hoped to intervene following the four-day military conflict between the two countries in May.
It stated "tariffs are primarily the consequence of the American president's "personal pique" that he was not allowed to play a role in seeking to end the long running acrimony between India and Pakistan".
India has consistently maintained that it does not accept third-party intervention in its conflicts with Pakistan.
Jefferies pointed out that this "red line" was upheld despite the heavy economic costs, effectively denying the 47th American president one of his opportunities to strengthen his international standing and potentially seek recognition such as the Nobel Peace Prize.
Another sticking point is agriculture. The report highlighted that no Indian government, including the current one, is willing to open up the agriculture sector to imports because of the severe consequences it would have on millions of people.
Nearly 250 million farmers and related labourers depend on agriculture for their livelihoods, with the sector accounting for nearly 40 per cent of India's workforce, the report noted.
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