In his remarks at the “ABP News Ideas of India Summit,” Goyal claimed that the US and India are not in rivalry because the US economy generates $80,000 per capita while India’s per capita income is $3,000.
US President Donald Trump’s shifting trade policies, according to Commerce Minister Piyush Goyal on Saturday, will benefit domestic companies more than trade tensions with India because US and Indian-made goods complement one another rather than compete.
“It is not possible to create Indian-made goods in the US at the same cost. Furthermore, India does not yet have access to the AI, defense capabilities, and innovation that the US offers. When asked about Indian industry’s concerns over US President Donald Trump’s tariff threats, Goyal responded, “India and the US complement each other and act as a force multiplier.”
India is not anti-import, he stressed, and not everything needs to be imported, even though eliminating all imports is not the goal.
“If a product cannot be made competitively due to a lack of the necessary skills, we will import it. If the US, Europe, or Japan have a comparative advantage in producing certain items, then those would come from there,” the Commerce and Industry Ministry said.
Responding to a question on talks with EV major Tesla, Goyal said: “If Tesla comes to India, there will be huge demand. The government is also working towards electric mobility. We welcome Tesla and all companies worldwide that are looking to invest in or manufacture in India.”
Trump’s tariff threats have caused uncertainty in a number of Indian companies that rely heavily on the US.
Following Trump’s announcement last week that he would slap tariffs on automobiles and pharmaceutical imports, equities in the pharmaceutical industry in particular fell.
Following Trump’s imposition of a 25% import tax on steel and aluminum products earlier this month, there are worries about dumping.
Additionally, the US President stated that reciprocal tariffs would be imposed by the US in April, which may have an especially negative effect on India.
