Trump 2.0: You Don’t Have to Worry Yet

Whatever the presidency, we are integrating our value chains and we are integrating the two economies through various agreements, says Commerce Minister Sunil Barthwal. File | Photo credit: PTI

The Commerce Department on Thursday (Nov 14, 2024) downplayed concerns over Donald Trump’s re-election as US president in light of his comments calling India a “tariff abuser” just one notch below China, noting notes that trade relations have grown continuously since then. In 2001, the value chains of both countries have become more seamlessly integrated over the years and between different governments.

Top trade officials termed some questions on the impact of the Trump 2.0 regime on India as ‘premature’ as Mr Trump is still assembling his team and it takes time to play out policy statements, based on which the Center can assess the situation as guaranteed. Over time, however, both countries have seen greater integration in their trade and investment flows, they noted.

Amid wariness among analysts over the US becoming increasingly protectionist and imposing higher import tariffs, Commerce Secretary Sunil Barthwal highlighted that Indian exports to the US have grown steadily between 2001 and 2023, coinciding with the tenure of four US presidents. India enjoyed bipartisan support in the US, he pointed out.

According to Commerce Department data, America’s Indian import pie has increased from 0.9% in 2001 to 2.8% in 2023. During this period, US imports from India have grown at a compound annual growth rate or CAGR of 10.48 %, compared to the average annual growth rate of 10.48%. total imports have grown at a CAGR of 4.76%.

“Whatever the presidency, we are integrating our value chains and we are integrating the two economies through various agreements including the India Pacific Economic Framework for Prosperity (IPEF) and bilateral mechanisms. We are able to achieve sustainable growth with the US,” said Mr Barthwal.