Roving Periscope: America’s conscience keepers, India Inc. against Trump’s tariffs
Virendra Pandit
New Delhi: Crises test one’s resilience. Braving a piqued US President Donald Trump’s unilateral and discriminatory tariffs, a resurgent India, led by Prime Minister Narendra Modi, is showing its mettle, with strong support from India Inc., and even the sectors most affected.
Worried at the adverse outcome of his erratic decisions, several US experts have also protested against the US President, who is not sparing them either. For example, the Federal Bureau of Investigation (FBI) has searched the Maryland home of John Bolton, a former National Security Adviser (NSA) to President Donald Trump in his first term, who later became a frequent critic.
Recently, the 2020 remarks of the US President’s elder sister, Maryanne Trump Barry, 83, a retired federal judge, went viral again. According to media reports, she called him a liar with “no principles.” She also criticized her brother for “phoniness” and “cruelty” in interviews her niece Mary Trump secretly recorded during conversations in 2018 and 2019, according to The Washington Post, which had obtained the recordings from her.
So, it is no wonder that Trump has antagonized the world against his own country.
India must stand up to the US bullying, said R C Bhargava, Chairman of Maruti Suzuki India Ltd (MSIL), India’s largest automobile manufacturer, the media reported on Thursday.
India should unite to deal with the 50 percent punitive US tariffs levied on Indian products. “It is our duty as Indians to do our very best to promote and maintain our dignity and respect and not give in to any kind of bullying in this matter… the nation has to stand united,” he said at the company’s 44th Annual General Meeting.
The US’ 50 percent tariffs on Indian goods came into effect on Wednesday, and may potentially impact exports and job creation in labour-intensive sectors such as shrimp, apparel, diamonds, leather and footwear, and gems and jewellery.
Bhargava said the US tariffs have caused upheaval across global markets.
“You’re all aware of the global uncertainty in recent months. President Trump has, in many ways, forced nations to rethink conventional policies and relationships. Personal use of tariffs in diplomacy is being seen for the first time,” he told the company shareholders.
Former NITI Aayog CEO and India’s ex-G20 Sherpa Amitabh Kant said India should use the situation to push through crucial reforms. The latest tariff measures should serve as a “wake-up call” for India, he wrote on social media.
“Trump’s tariffs must be a wake-up call for India. The irony is striking: the US is actively negotiating with Russia and China, the latter being the largest buyer of Russian oil, yet chooses to target India with tariffs instead. Let us be clear, this is not about Russian oil. It is about India’s energy security and strategic autonomy, which we should never compromise.”
Kant said that India must stay firm on protecting its strategic interests, while using the situation to push through crucial reforms. “India has, on numerous occasions, refused to yield to global pressure. This moment should be no different. Rather than intimidate us, these global headwinds must galvanise India into bold, once-in-a-generation reforms, while also diversifying our export markets to secure long-term growth and resilience.”
Earlier this month, about India’s trade relationship with China, he had said that despite difficult political ties, India should aim at building joint ventures with Chinese companies, rather than depending heavily on imports from China. “We do about Rs. 120 billion worth of imports from China. Despite having a very adverse relationship with Japan, China continued to maintain a very close economic relationship with Japan. China has a very adverse political relationship with Taiwan as well. Yet the biggest investors in China are Taiwan and the Taiwanese businessmen.”
“It is in our economic interest that instead of importing from China, we should get Chinese to do joint ventures with Indian companies on a minority stake and do manufacturing in India. That will enable India to do both input manufacturing and component manufacturing and accelerate the process of Make in India and Manufacture in India, which is a long-term answer to economic growth.”
On India’s growth ambitions, Kant pointed to the larger economic vision. “The key is how do we take India from a USD 4 trillion to a USD 35 trillion economy by 2047. That’s the vision of the Prime Minister. We need to provide momentum for growth, and grow at 8 to 9 percent per annum, year after year. Instead of importing, we should focus on manufacturing in India with China. That will create jobs in India,” he said.
Meanwhile, industry reports from textile hub Tiruppur, Tamil Nadu, denied speculations about factories being shut down and migrant workers asked to leave. A. Sakthivel, Vice-Chairman, Apparel Export Promotion Council, was quoted as saying that no garment unit has been shut down at Tiruppur and lakhs of migrant workers are still working in the textile town. “Everything is normal now. One can visit Tiruppur to see for themselves now,” he added.
