Key Highlights:
- India to protect national interest despite US tariff hike starting August 1.
- Trade talks with the US for a Bilateral Trade Agreement are ongoing.
- IMF projects India’s GDP growth at 6.4 percent for FY26 and FY27.
New Delhi: Commerce Minister Piyush Goyal addressed Parliament after US President Donald Trump announced a 25 percent tariff and penalty on Indian goods starting August 1. Goyal said India is prepared and will take all necessary steps to protect national interest, especially while making trade deals with any country.
India Dismisses “Dead Economy” Remarks
Goyal rejected Trump’s comment about India being a "dead economy," saying that India is now the fifth-largest economy, up from 11th place ten years ago.
"India is the fastest-growing economy in the world," he said. International agencies like the IMF call India a “bright spot” in the global economy.
Free Trade Agreements (FTAs) and Global Partnerships
The minister said India has already signed mutually beneficial FTAs with countries like the UAE, Australia, UK, and EFTA nations.
India is in talks with more countries to sign similar agreements. Goyal added that the government is focusing on helping farmers, small businesses (MSMEs), and industry, and believes India will soon become the third-largest economy in the world.
Talks with US Still Ongoing
India and the US started discussions in March 2025 for a Bilateral Trade Agreement (BTA). The goal is to finish the first phase by October-November 2025.
According to Goyal, the US announced a baseline 10 percent tariff in April, and a total of 26 percent tariff on Indian goods was planned. While this was delayed twice, the full tariff will now start from August 1, 2025.
IMF Growth Forecast for India
The International Monetary Fund (IMF) has increased its growth forecast for India. It now expects India’s GDP to grow at 6.4 percent in both FY26 and FY27. This shows that global agencies have confidence in India’s economy.
Government’s Firm Stand
Goyal stressed that the Indian government will stand strong and protect local industries, farmers, and small businesses.
The Commerce Ministry also said that India is committed to completing a fair and balanced trade deal with the US, similar to other recent agreements.
(With IANS Inputs)
