Amid rising tensions over tariffs imposed by the US, External Affairs Minister S. Jaishankar has called for respect for India’s ‘Lakshman Rekhas’ in any trade agreement between the two countries. He added that efforts are underway to find a ‘shared basis’ for agreements. Speaking at the Kautilya Economic Enclave, Jaishankar acknowledged the existence of several issues between India and the US, many of which are related to the failure to finalize a proposed trade agreement. He stressed the importance of a trade understanding with the US, recognizing it as the world’s largest market, while simultaneously emphasizing that India’s boundaries must be respected.
Jaishankar highlighted that issues with the US currently exist. A major reason is the lack of concrete progress in trade negotiations, leading to tariffs being imposed on India. He also noted a double tariff that India views as highly inappropriate. This tariff targets India’s purchase of fuel from Russia, even though many other countries are doing the same, including those with far more contentious relations with Russia. The relationship between New Delhi and Washington has been strained since the Trump administration doubled tariffs on Indian goods to 50 percent, including a 25 percent tariff on Indian purchases of Russian crude oil. However, efforts to work on a proposed trade agreement have followed a phone conversation between Prime Minister Modi and former US President Trump.
In response to questions, Jaishankar underscored the necessity of a trade understanding with the US, emphasizing its position as the world’s largest market. He also stated that most countries have already established such an understanding with the US. India’s stance, the External Affairs Minister explained, involves finding common ground that respects India’s boundaries. Discussions on this matter have been ongoing since March, he noted. Jaishankar mentioned that the tensions in the relationship do not affect every aspect of their ongoing dialogue.
He pointed out that there are problems and issues that need to be addressed through discussion and solutions, which is what is being attempted. He expressed reluctance to draw many implications, but added that a large part of the relationship remains unchanged, or even stronger in certain cases. In his speech, Jaishankar stated that the world is currently undergoing changes. The strategic consequences are evident, with the weakening and, in some cases, disappearance of international rules and systems.