Former Foreign Secretary and Rajya Sabha MP Harsh Vardhan Shringla has expressed hope that India and the United States will eventually conclude a “satisfactory, mutually beneficial” Free Trade Agreement (FTA), even as Washington’s 50 per cent tariffs on Indian goods came into effect on Wednesday.
Highlighting the personal rapport between Prime Minister Narendra Modi and former US President Donald Trump, Shringla said the “close and special partnership” could create the foundation for future trade cooperation. He recalled landmark events like Howdy Modi and Namaste Trump, which underscored the leaders’ strong connection since Trump’s first term.
“One thing I know is that President Trump and Prime Minister Modi enjoy a very close and special partnership. Hopefully, we will find a way to conclude a mutually beneficial FTA early rather than late,” Shringla noted.
While ruling out any immediate certainty of a deal, Shringla stressed that India is working to cushion the blow of tariffs by diversifying exports. He pointed to ongoing trade agreements with the UK, Australia, UAE, and negotiations with the European Union as alternative pathways.
According to the Global Trade Research Initiative (GTRI), the new tariffs threaten 66 per cent of India’s exports to the US, worth over USD 60 billion. Labour-intensive sectors such as textiles, gems and jewellery, and shrimp face potential export collapses of up to 70 per cent, while pharmaceuticals and electronics remain largely unaffected.
Shringla voiced confidence in the resilience of India-US ties, calling them “the most comprehensive, multi-faceted relationship” India shares with any country. He added that shared values and principles would help both nations navigate the current trade turbulence.
He also welcomed the appointment of Sergio Gor as the next US Ambassador to India, calling it a “positive step,” and underlined India’s push to boost capacity in semiconductors, rare earths, and other critical technologies with global collaboration.
