New Delhi, Feb 3: As India and the US agreed to a trade deal under which Washington slashed reciprocal tariffs on Indian goods from 25 per cent to 18 per cent, several former ambassadors welcomed the move, some terming it a “historic deal”, and others describing it as a “very positive development” and result of “quiet diplomacy”.
An ex-diplomat and strategic affairs expert also said that while the tariff reduction came as a “major relief”, a comprehensive bilateral trade agreement will “take a while to achieve”.
“I see this as a very good development, something that India has been expecting for a while. It’s going to help us in many ways, mainly in the labour-intensive industry.
“It will also open up new ways in which we can partner with the US in other fields like technology, etc. Overall, a good development,” former ambassador Anil Wadhwa said. Wadhwa, who served as India’s envoy in Italy, Poland and Oman, termed the deal a “positive development” for both sides. “The major relief is the reduction in tariffs to 18 per cent, which will be very helpful,” he said.
Leading business chambers and think-tanks have also welcomed the deal announced by Trump on Monday, calling it a “first step” toward a comprehensive bilateral agreement that will unlock more private sector collaboration and help clear a pathway to work on other pressing matters.
Wadhwa said when it comes to the bilateral agreement, the major issues on the table include “data storage, e-commerce, and our internal regulations”.
And, India will have to be “negotiative to see how much we can accommodate the US”, but for the foreseeable future, “I don’t see that happening. It is going to take a while”, he said.
On January 29, the Ministry of External Affairs told the Rajya Sabha in a written response that the US remains one of India’s largest trading partners, and “both sides are currently engaged in negotiations on a mutually beneficial multi-sectoral bilateral trade agreement”.
India’s former envoy to the US, Harsh Vardhan Shringla, described the deal as “historic” and said the reduction in tariffs entails a “huge advantage to our exporters”.
Following up with the recent deal with the European Union, he said, “If that was the mother of all deals, this is the father of all deals.” On January 27, India and the EU announced the conclusion of negotiations for a free trade agreement.
“The trade deal was concluded yesterday based on a conversation between the prime minister of India and the president of the United States. We know the broad contours of the deal, and the details will be worked out by officials. What is important, and this is what the Opposition has to take note of, is the figure that is being given: 18 per cent,” Shringla said.
He pointed out that this figure, which would decide the scope of access for exports to the US, is lower than the figures for any other country that is a competitor of India — lower than that for China, Vietnam, Indonesia, Pakistan or Bangladesh.
“That is a huge advantage to our exporters. We are going to see a surge in exports to the US. That is what the opposition should be happy about,” Shringla, also a Rajya Sabha member, said.
India’s Ambassador to the US, Vinay Kwatra, termed the trade deal a “big win” that opens up vast new opportunities for the two economies.
“A big WIN for a consequential partnership under the leadership of Prime Minister Narendra Modi and President Donald Trump,” Kwatra said in a post on X on Tuesday.
He said the deal will create “new opportunities for the two economies and the people of our two great nations. Today’s announcements herald an exciting new phase in our partnership”.
Veena Sikri, who served as India’s high commissioner to Bangladesh from 2003-2006, described the development as a result of “quiet diplomacy” for the past several months.
“It is difficult to identify one key turning point, but certainly there’s been a lot of quiet diplomacy for the last eight months, very calm and restrained. I think the most important aspect is that India’s response at every stage was very calm and restrained. There was no histrionics, no anger. It was very, very subdued and very collected,” Sikri said. (PTI)
