Richard Martin has said that India has stood up strongly against the US tariff decision because Prime Minister Modi knows that he has many options. He said that as soon as the US tariffs came, India stopped arms deals with America, which shows that India's options go far beyond the Pentagon.
Washington: Donald Trump has imposed a 25 percent trade tariff on India and a 25 percent fine for buying Russian oil. That means the US tariff on Indian goods has now become 50 percent. If the 25 percent fine for Russian oil is not removed by August 27, then India will be the only country on which the US tariff will be the highest. Trump's tariff will have a direct impact on India's textile, pharma, steel, and manufacturing sectors. India has described this decision of the Trump administration as unjust and one-sided. While the Indian Prime Minister has made it clear that India will not make any compromise for its farmers, laborers, and domestic industry, no matter what the cost.
Many people have expressed surprise at India's decision. How did India refuse to bow down to America? Writing in Asia Times, the Netherlands' International Relations and International Trade Expert Richard Martin has written that Modi has taken such a decision because 'India knows that it is not completely dependent on America and it has many alternative strategic options. This is why immediately after this decision, India stopped purchasing arms from America, which is an indication that New Delhi is now ready to open its cards in a new way.
'India has many options'
Richard Martin has said that India has stood up strongly against the US tariff decision because Prime Minister Modi knows that he has many options. He said that as soon as the US tariffs came, India stopped arms deals with the US, which shows that India's options are far beyond the Pentagon. He has said that the reason for India's strength is multilateral platforms like BRICS and it is not dependent on the US alone. He said that India is playing its role on platforms like G20 and SCO along with BRICS. He has especially emphasized on BRICS, in which countries like the United Arab Emirates, Egypt, Ethiopia and Indonesia have also joined, due to which BRICS has now become an economy of $32.5 trillion.
He said that BRICS now accounts for about 40 percent of global trade. On the other hand, India, which now trades $65–69 billion with Russia, is paying in rupee-ruble for Russian oil. In addition, India's currency swap arrangement with the United Arab Emirates is also growing rapidly. This means that the US dollar-based pressure mechanism does not have the same grip on India as before. When Trump raises tariffs, India can easily lean towards the east and south instead of just looking towards the west.
India's big role in the global supply chain
He said that India now exports 60 percent of the world's generic medicines and exported medicines worth $28 billion in 2023–24. If the US imposes tariffs on Indian medicines, its burden will fall directly on the pockets of American citizens, where healthcare is already expensive. Apart from this, India's IT and ICT service sectors, which are worth about $150 billion annually, are still the backbone of America's corporate economy. So how can Donald Trump remain profitable by imposing tariffs on India? Indian engineers and technology solutions are available everywhere. In this regard, Donald Trump's tariff war can backfire and the cost of American companies will increase, and uncertainty will arise about India's IT talent.
Talking about the diplomacy of the Modi government, Richard Martin has written in Asia Times that India's strategy is completely clear. The more pressure is created today, the deeper India will move towards alternative poles. In this regard, Trump's tariff war will strategically weaken America itself. If the US really wants India to stay with it, it will have to find ways of incentives, investment and shared supply chains, and not gain anything by imposing tariffs on India.
PC:NBT
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