Abhijit Bhattacharyya | Donald, Dragon and Dollar: Delhi caught in the middle?
1 month ago

Abhijit Bhattacharyya | Donald, Dragon and Dollar: Delhi caught in the middle?

Deccan Chronicle  

Call it tempest, turbulence, tsunami or whatever you want, the new President of the United States, Donald Trump, has already done it -- by inflicting a sense of fear and uncertainty to torment friends and foes alike. While it is no economic match for either the US or China, the “high” Indian tariffs are also in Mr Trump’s line of fire, as became evident during his meeting with Prime Minister Narendra Modi at the White House last week. The idea is to trim the “huge” $35 billion trade surplus that India currently has with the US. This lay behind the Budget appeasement, as the Union finance secretary wryly stated: “We don’t want to give anybody any signal that we would like to be protectionist”. This is why New Delhi is under pressure, given its $35 billion trade surplus with the US, to reduce or even abolish tariffs to keep Mr Trump in good humour.

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