Ex-Diplomat Shringla Hopeful of India-US Free Trade Agreement

• Former diplomat HV Shringla expressed hope for a future India-US Free Trade Agreement.
• He cited the close relationship between PM Modi and President Trump.
• India is exploring alternative markets to minimize the impact of the new tariffs.

GG News Bureau
New Delhi, 27th Aug: Former Foreign Secretary and Rajya Sabha MP Harsh Vardhan Shringla remains hopeful that India will be able to conclude a “satisfactory mutually beneficial” Free Trade Agreement (FTA) with the United States, despite the recent 50% tariffs imposed on many Indian products.

Contrary to some reports, Shringla clarified that he is hopeful, not certain, about the possibility of an early agreement. He emphasized the “close and special partnership” between Prime Minister Narendra Modi and President Donald Trump, citing events like “Howdy Modi” and “Namaste Trump” as evidence of their strong connection.

Shringla said that India is actively working to “minimize” the impact of the new duties by finding alternative markets. He pointed to existing Free Trade Agreements with the UK, Australia, and the UAE, and ongoing talks with the European Union, as ways to divert exports.

He expressed confidence that the strong, multifaceted relationship between India and the US, built on shared values, will help them navigate through the current trade dispute. He also called the appointment of Sergio Gor as the next US Ambassador to India a “positive step.”

The new tariffs, which came into effect today, are expected to hit a large portion of India’s export basket. A report by the Global Trade Research Initiative (GTRI) warns that exports from labor-intensive sectors could collapse by up to 70%, particularly impacting textiles, gems and jewellery, and shrimp exports. The report notes that around $60.2 billion worth of Indian goods could face duties of 50% or higher.