a day ago
- Business
- United News of India
Ex-foreign secy optimistic of breakthrough in India-US trade talks
Bengaluru, June 6 (UNI) Former foreign secretary Nirupama Rao has indicated that a major breakthrough in Indo-US trade negotiations may be within reach, asserting that the two countries are working through tariff and regulatory challenges as part of a broader strategic convergence.
Speaking at Frontline India, an event orgainsed FICCI FLO, Nirupama Rao said the resilience and depth of the India-US relationship had enabled both sides to adopt a "problem-solving approach" to contentious issues like market access and protectionism.
"In the face of rising tariffs and creeping protectionism, India has found ways to navigate the pressure. Given the strength of our relationship with the United States, I sense that a forward-looking agreement is truly within reach," Nirupama Rao said, while stressing that discussions were addressing both tariff and non-tariff barriers.
She further underlined India's commitment to strategic autonomy and responsibility in global affairs. "We march to the beat of our own drum, but we act with responsibility — and that is our reputation globally," she said, citing India's leadership during its G20 presidency as an example of its growing stature.
Nirupama Rao criticised the erosion of the World Trade Organization's effectiveness, suggesting that some major powers had contributed to weakening multilateral mechanisms. "This is a challenge not just for India, but for all countries in the Global South," she remarked.
These comments come in the wake of US Commerce Secretary Howard Lutnick expressing reservations about India's trade policies. While reaffirming his admiration for India, Lutnick flagged concerns over India's high tariffs and its historical defence procurements from Russia. "India has very high tariffs — it needs to bring those down to build a fair and strong relationship," he said.
However, Lutnick also acknowledged the evolving alignment between India and the US, especially in the wake of shifting global power dynamics. He noted that India's previous defence ties with Russia had been a source of tension but recognised that "trends are changing" as New Delhi and Washington increasingly align economically and strategically.
Despite the reservations, Lutnick sounded optimistic about the path ahead, suggesting that a bilateral trade agreement was possible "in the not-too-distant future."
Nirupama Rao, meanwhile, urged a national effort to rebuild manufacturing capabilities lost over the last three decades. "Our trade deficit with China stands at over USD 100 billion. We used to make our own APIs and electronic components — that capacity must be restored," she said, calling it a generational challenge.
UNI BDN PRS
