New Delhi [India], August 28 : Israel's Ambassador to India, Reuven Azar on Thursday said that he believed that US tariffs on India is a temporary issue which will be resolved through dialogue.
Azar, while speaking to ANI, said that India-Israel relations will not be compromised.
"I don't think it has any effect [on India-Israel relations]. I'm not an expert on the Indian market. I know that when it comes to the trade between India and Israel, it's not going to be undermined. Well, I hope this is a temporary issue that will be solved because I think that countries have a common interest to continue cooperating," he told ANI.
The immediate impact of the recently imposed US tariffs on Indian exports may appear limited, but the secondary and tertiary effects on the economy pose significant challenges that must be addressed, highlighted a report by the Department of Economic Affairs under the Ministry of Finance.
According to the report, the initial impact on exports is contained; the broader effects could emerge in areas such as supply chains, inflationary trends, and the competitiveness of Indian goods in global markets.
It stated, "While the immediate impact of recent US tariffs on Indian exports may appear limited, their secondary and tertiary effects on the economy pose challenges".
To navigate the challenging global trade environment, the Prime Minister has announced a set of policy initiatives aimed at boosting growth and strengthening the economy.
A key step is the creation of a Task Force for Next-Generation Reforms, which will work towards simplifying regulations, lowering compliance costs, and fostering a more enabling environment for start-ups, MSMEs, and entrepreneurs.
Additionally, the government is preparing to roll out the Next-Generation GST Reforms in the coming months. These reforms will focus on reducing the tax burden on essential items, a move expected to provide direct relief to households and boost consumption demand.
The report also noted that a recent rating upgrade is expected to provide further momentum by lowering borrowing costs, attracting greater foreign capital inflows, expanding access to global capital markets, and easing inflationary pressures.
This, in turn, will cut input costs for businesses and support overall economic growth.
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