Amidst tensions in India-US relations due to increased tariffs imposed by the United States, External Affairs Minister S. Jaishankar stated that any trade agreement between the two nations must respect New Delhi’s ‘Lakshman Rekhas,’ or red lines. Jaishankar indicated that efforts are underway to find common ground on this matter. Speaking at the Kautilya Economic Enclave, Jaishankar acknowledged that there are several issues between India and the US, many of which relate to the failure to finalize the proposed trade agreement. He emphasized the importance of reaching a trade understanding with the US, considering it the world’s largest market. However, he also made it clear that India’s boundaries need to be respected.
Jaishankar stated that there are current issues with the US, partly because of the inability to reach a concrete outcome in trade talks, which has led to certain tariffs being imposed on India. He also mentioned a double tariff that India views as highly inappropriate, targeting India for purchasing fuel from Russia, while other countries, including those with significantly more confrontational relations with Russia, are doing the same. Relations between New Delhi and Washington have been strained since the Trump administration doubled tariffs on Indian goods to 50 percent. This includes a 25 percent additional tariff on Indian purchases of Russian crude oil. Despite this, there have been efforts to work on a proposed trade agreement after a phone conversation between Prime Minister Narendra Modi and former US President Trump.
Jaishankar reiterated that a trade understanding with the US is crucial because it is the world’s largest market, and most other nations have established such understandings with the US. He clarified that India’s approach is clear: it needs to find common ground that respects India’s ‘Lakshman Rekhas,’ and talks on this matter have been ongoing since March. Jaishankar added that the strains in the relationship are not affecting all aspects of the dialogue.
He said that there are issues that need to be discussed and resolved. He further said that he would avoid drawing any implications from the issues. He noted that a significant portion of the relationship remains as strong as before or even stronger in some cases. In his address, Jaishankar also highlighted that the world is undergoing changes, and the strategic consequences are evident, with weakening and sometimes disappearing international systems and rules.
