ET@Davos: India will ready a response to Trump measures, says Ashwini Vaishnaw

Ashwini Vaishnaw, leading the Indian delegation at Davos, emphasized India’s trust with global companies and strong US relationship despite potential issues like birthright citizenship changes. India presents a unified front for investments, focusing on manufacturing interest and AI development. Prime Minister Modi’s economic policies and trust in India’s foreign policy are key highlights.

India is examining the US ‘America First’ trade policy to determine its impact on bilateral trade. The White House directive to identify countries for potential agreements is viewed positively. Discussions are ongoing with US trade policies, and India’s government is awaiting key trade official appointments for further dialogue.

India is reviewing the impacts of Trump’s America First Trade Policy on its trade relations with the US, its largest trading partner. The memo suggests exploring bilateral or sector-specific agreements. Key trade officials’ confirmations in the US are awaited. Trump also threatens 100% tariffs on BRICS nations targeting the US dollar’s role in global trade.

Budget 2025: Nuts and Dry Fruits Council of India (NDFC) urges the government to set walnut import duty on a per-kilogram basis, reduce GST on dry fruits to 5%, and implement a production-linked incentive scheme to boost sector growth. India’s dry fruits market is projected to reach USD 12 billion by 2029.

India’s rice exports in 2024 remained steady despite earlier export curbs, with high basmati rice shipments compensating for a decline in non-basmati rice sales. The country’s total exports reached 17.8 million metric tons, down slightly from the previous year. Demand from Saudi Arabia, Iraq, and the UAE drove a 16.3% increase in basmati rice exports.

The Trump administration’s decision to withdraw from the OECD’s global tax deal will impact international consensus on a global minimum tax, but India remains unaffected. Experts note that the US exit will disrupt countries already adopting the Global anti-Base Erosion Model rules. With India’s cautious approach and recent tax amendments, it faces minimal direct consequences.

The government had allowed the import of tur under the ‘free category’ from May 15, 2021. Subsequently, the free regime has been extended from time to time.

The Diamond Imprest Authorization (DIA) Scheme, effective April 1, 2025, allows duty-free import of natural cut and polished diamonds under ¼ Carat for eligible exporters. It mandates a 10% value addition for exports and targets boosting exports and creating jobs in the diamond industry, addressing recent declines.

The Centre has extended duty-free imports of tur dal until March 2026 to curb rising retail food prices. Despite some recent declines, retail prices of tur remain high, with year-on-year figures showing mixed trends across different states. The measure aims to offset the impact of reduced domestic production and ensure sufficient supply amidst ongoing food […]

With Donald Trump’s return, India is evaluating importing more from the US to enhance trade relations. The move looks to reduce tariffs and balance trade. India plans to boost exports, especially in pharmaceuticals and electronics, amidst higher US tariffs on Chinese goods. Government encourages domestic production to meet this new demand.