India US trade talks: Former Reserve Bank of India (RBI) Governor Raghuram Rajan has expressed his opinion regarding the ongoing tariff talks between India and America. Rajan said in an interview given to American think tank DeKoder that India should aim to keep its tariff level in the range of 10 to 20 percent in the ongoing trade talks with America. India should not make any promise which is difficult to fulfill.
Everyone is curious about the results of the ongoing trade talks between India and America. America has imposed a tariff of 50 percent on India. Market experts believe that there is every possibility of loss to the Indian economy due to this.
What did former governor Raghuram Rajan say?
During a conversation with American think tank DeKoder, Rajan talked about keeping India’s tariff level in the range of 10 to 20 percent. He also said that India should not make tough commitments like Japan and European countries. Due to which the country’s economy may suffer losses in future. According to Rajan, if India can reach zero tariff level in this tariff negotiation, it will be good for the country.
At the same time, we have to keep in mind that we should not be left behind by our competitors. Many countries of East and South Asia have agreed to 19 percent tariff on American tariff. Whereas, if we talk about developed countries like Europe and Japan, the tariff has been agreed upon at 15 percent. Raghuram Rajan feels that, keeping all these things in mind, India should keep the tariff level from America between 10 to 20 percent.
Tariff talks continue between India and America
America has imposed a huge tariff of 50 percent on goods imported from India. Due to which the demand for Indian products is likely to fall in the American market. Tariff negotiations have taken place at many levels between America and India. Recently, an Indian delegation has returned from a trip to America.
Indications are being given from both the countries that the talks will be positive. America is talking about a ban on buying Russian oil. However, India has clarified that their objective will be according to the interests of Indians.
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