The US and India have a very consequential relationship, which, apart from trade, draws strengths from economic, political, and security imperatives, commerce and industry minister Piyush Goyal said on Wednesday.
“It is already very good. I don’t see any problem as we speak also. And, to my mind, the relationship with the US that India enjoys is very substantive, very consequential for the world -- being two large democracies,” the minister said at the Bloomberg New Economy conference in New Delhi. He said this when asked if he thinks India’s relationship with the US will improve after President Donald Trump.
The question of session moderator, Bloomberg head of economics and government Stephanie Flanders, pertained to the delay in concluding an interim India-US bilateral trade agreement (BTA) due to geopolitical reasons, including New Delhi purchasing Russian oil to meet its energy requirements and America reacting through weaponising tariffs and trade.
“One must bear in mind that it’s not only about trade,” Goyal said. “Of course, they are the largest trading partner, and I think, will continue to be in years to come. And, by and large, I don’t see any problem in any agreement also with the United States.”
Goyal said the India-US relationship is not just trade but also about partnerships in areas such as defense, technology, critical minerals and people-to-people engagements.
When the moderator asked whether the next president might be more willing to listen, the minister replied: “I think, whatever may be reported at the Bloomberg New Economy Forum … or even in your wire services, the fact that the United States and India continue to have a very close relationship. And we continue to engage with them on so many tracks.”
Goyal explained that India and the US continue to have close strategic ties as they conduct defense exercises together. He added they are working towards ensuring resilient and reliable supply chains for technology and goods and services.
“I think the US and India have a very, very consequential relationship, and it’s only going to get better and better, irrespective of changes in political thinking, whether in India or the US. The relationship has drawn its strength from our economic imperatives, from our political imperatives, from our security imperatives. So, it’s a very safe relationship. I don’t think the rest of the world needs to worry about it,” he said.
India-US ties fell to their lowest point in over two decades after Trump imposed 50% tariffs on Indian exports last year. The two sides reached an understanding in February to slash tariffs to 18% as they worked towards BTA. Leaders from both countries have said they have agreed on most elements of the deal. Trump has threatened tariffs on countries purchasing Russian oil.