India denies agreement on tariff reductions amid US claims

Following recent remarks by U.S. President Donald Trump about India, Commerce Secretary Sunil Barthwal has clarified to the Parliamentary Standing Committee on External Affairs that negotiations with the United States concerning trade tariffs remain ongoing, and no formal agreement has been reached yet.

The committee, chaired by Congress MP Shashi Tharoor, was updated by Barthwal on the status of discussions between the two countries, despite Trump's claims that India has agreed to significantly reduce tariffs.

During a briefing at the Oval Office, President Trump asserted that India imposes substantial tariffs which make it difficult for the U.S. to conduct business effectively.

He claimed that India has agreed to lower these tariffs, a statement that has not been confirmed by Indian officials. Delhi's response to Trump's comments has been notably restrained, focusing instead on the ongoing preparation for potential bilateral trade agreements.

Barthwal emphasized India's commitment to free trade and its desire to enhance trade relations with the U.S. He argued that a tariff war would be counterproductive and could lead to adverse economic consequences, including a potential recession.

Addressing inquiries from committee members on why India has not protested as vocally as Canada and Mexico regarding U.S. tariffs, Barthwal explained that the situations differ due to the U.S.'s specific security and immigration concerns with its North American neighbors.

Furthermore, Barthwal assured the committee that any trade agreement will be "mutually beneficial," with India intent on protecting industries vital to its domestic economy. He pointed out that while India is open to reducing tariffs on a bilateral basis, it cannot adopt a blanket approach for all international engagements, underscoring the importance of a bilateral trade pact with the U.S.

In addition to trade discussions, Foreign Secretary Vikram Misri briefed the panel on India's relationships with China and Europe. He noted concern over China's plans to construct a dam on the Brahmaputra River, highlighting it as a significant issue for India, given the strategic and environmental implications.

These developments reflect the intricate and ongoing nature of international trade negotiations, with India aiming to balance its economic interests while engaging constructively with major global powers.