America's bullying will not work against India; Know what is Modi government's plan regarding Tariff War

India is now adopting a harder attitude compared to the past in its negotiations with the United States on the trade agreement. India is now putting pressure on the United States to lower the 25 percent tariff on steel and aluminum. In case the United States does not comply, India can raise the tariff for such imports as almonds and apples from the United States.

India knocked on the door of the World Trade Organization (WTO) for the reduction of the duty on steel and aluminium. The US had raised the steel and aluminium duty on all countries on March 12 to 25 percent. Before India, there had been many other countries opposing the US decision.

According to Jagran sources, the Commerce Ministry has also told Indian exporters not to give any kind of discount to the US buyers. After the announcement of 26 percent reciprocal duty on India on April 2, US buyers were demanding discounts from Indian exporters to reduce the burden of duty.

However, this decision of reciprocal duty has been postponed till July 9, but US buyers are still demanding discounts from Indian exporters.

It is believed that during the talks on the bilateral trade agreement (BTA) between India and the US in the US from May 17, there may be talks between the two countries on the duty on steel and aluminium.

Under the leadership of India's Commerce and Industry Minister Piyush Goyal, high level talks will be held between the two countries on trade agreement from 17-20 May in which an attempt will be made to reach a consensus on the duty imposed on various sectors.

An agreement on the first phase of BTA is expected by September-October this year, but before that both the countries can reach a consensus on the duty. In the talks to be held next week, India will try to reduce the duty as much as possible in sectors like textile items, leather, gems and jewellery, engineering goods.

At the same time, America will insist on reduction in duty imposed on various types of food items and automobiles from India. Sources say that India may agree to give duty exemption to America on other food items except dairy products. India can also give complete exemption in duty to America on industrial items so that the manufacturing items exported from India get complete exemption in duty.

America exports very little manufacturing items to India except automobiles, so giving complete exemption to America will not affect Indian domestic industry. But if India gets complete exemption, India's exports to America can increase a lot. India exports most of the goods to America. Sources say that India will try its best to reach a trade agreement with America before 9th July.