India has 'effectively walked away' from US trade talks: Ex-official
What's the story
Former Finance Secretary Subhash Garg has claimed that India has "effectively walked away" from trade talks with the United States. The development comes after US President Donald Trump imposed unilateral tariffs of up to 50% on Indian goods. Garg said these high tariffs make it impossible for any meaningful trade to take place between the two nations.
Oil dispute
Trump's 'profiteering' allegations called political theater by Garg
Garg also slammed Trump's allegations that India is "profiteering" from discounted Russian oil. He called the accusations "political theater, not economic reality," citing a CLSA report that puts India's savings at $2.5 billion annually instead of the claimed $25 billion. Despite these tensions, he emphasized India is within global price-cap frameworks for Russian oil purchases and warned backing off could embolden the US further.
Negotiation stance
India urged to rethink 'rigid' negotiating positions
Garg also urged India to rethink its "rigid" negotiating positions, especially in agriculture and consumer goods. He said being inflexible on issues like GM oils or dairy doesn't hurt farmers' interests but is more about consumer preference. Despite these challenges, PM Narendra Modi has vowed not to compromise on farmers' interests.
Ongoing discussions
US court ruling on Trump's tariffs
Reportedly, India and the US are keeping their trade talks informal despite the tensions. A top official from the Ministry of Commerce and Industry said that while formal talks have been postponed, channels remain open for defense and foreign policy issues, Hindustan Times reported. However, a recent US court ruling found most of Trump's tariffs illegal but allowed them to stay until October 14 pending an appeal by his administration.