India Positioned for Resilience Amid Trump-era Trade Disruptions: ITC Chairman Sanjiv Puri
India is in a 'much better' position to handle the global trade disruptions caused by the Trump administration's actions as it continues to be driven by domestic consumption, ITC chairman Sanjiv Puri stated.
Puri, who is also the CII president, felt that India will be able to ride out the storm as it is already negotiating with several trade partners like the US, the UK and the EU to strike bilateral agreements which will make trade and investment easy.
On April 2, US President Donald Trump imposed retaliatory tariffs on many countries, including India, which he extended by three months on June 9 except for China, which is still facing a 145 per cent tariff. However, a 10 per cent additional duty on exports from all nations to the US remains intact. The so-called reciprocal tariffs have been put on hold until July 9.
When questioned regarding the effect of such tariffs on the local industry, Puri stated it would be hard to predict how it will go, but India would be 'much better' placed in this regard.
"It is hard to say how it will shape up, but my own feeling is that at the end of it, I think India is going to be far better placed, because I do see the possibility of a number of FTAs (free trade agreements) being signed, which industry has been waiting for some time, hopefully during the year, whether it's the EU, the UK, and, of course, the US, where there is, I think discussions, dialogue at a faster pace," Puri said while delivering a fireside chat Resilience and Growth in the New World Disorder at the AIMA summit.
India and the US have been in talks to sign a bilateral trade deal since March. Both countries have aimed to finalize the first phase of the agreement by autumn (September-October) of the year with a view to over doubling bilateral trade to $500 billion in 2030.
Puri had contended that India's domestic consumption-led economy would not take a beating.
"So while short term uncertainty, unpredictability might be having some kind of effect on world growth too. a subsequent small effect on India because it is a consumption driven economy will also be there", he said.
Speaking about the effect on ITC, Puri noted that it is also a 'more domestic-focused industry' but acknowledged that it will be affected some extent because of the US tariffs.
