No reassessment of ties with US, India in wait-and-watch mode on further tariff action
The comments by senior official come after confirmation that a planned US trade delegation visit to New Delhi later this month has been called off, underscoring uncertainty in the prospects of a breakthrough in the talks.
- Aug 17, 2025,
- Updated Aug 17, 2025 10:04 PM IST
India has ruled out any reassessment of its broader relationship with the United States even as it adopts a wait-and-watch approach on Washington’s next steps on tariffs, a senior government functionary said on Sunday.
The comments come after confirmation that a planned US trade delegation visit to New Delhi later this month has been called off, underscoring uncertainty in the prospects of a breakthrough in the talks.
“We are not sure and don’t know about their next actions. We will have to wait,” the official said, referring to US tariff measures and threats of further action. “As a result it is difficult to plan support for our exporters at this stage.”
While acknowledging that exports to the US could face “considerable injury,” the functionary stressed India’s economy remained resilient. “Markets are not easy to replace, but what may be lost in exports to the US would be offset over time. The Indian economy is doing fine and while there can be some impact on exports due to the US tariffs, it will not be big,” they added.
The functionary also underlined that institutional linkages with Washington remain intact in areas such as defence and space cooperation. “We are buying more American crude oil and gas, but we have also not reduced Russian oil purchases,” they said.
The remarks come at a time when trade ties with the US are under a cloud, even as a thaw with China appears to be warming up with Chinese Foreign Minister Wang Yi’s visit to India for high-level border talks and an expected meeting with Prime Minister Narendra Modi. According to sources, no decision has yet been taken on allowing up to 24 per cent Chinese ownership in Indian firms engaged in electric vehicles, batteries, and related sectors by easing Press Note 3.
Domestically, the policymaker highlighted that ongoing GST reforms will have a “significant positive impact” on consumption and growth, noting the timing coincided with tariff-related uncertainties.
India is also taking comfort from S&P’s upgrade for the sovereign and five large Indian banks, which officials described as an affirmation of the country’s economic fundamentals. “These are all signals that the economy is doing fine,” the functionary said.
India has ruled out any reassessment of its broader relationship with the United States even as it adopts a wait-and-watch approach on Washington’s next steps on tariffs, a senior government functionary said on Sunday.
The comments come after confirmation that a planned US trade delegation visit to New Delhi later this month has been called off, underscoring uncertainty in the prospects of a breakthrough in the talks.
“We are not sure and don’t know about their next actions. We will have to wait,” the official said, referring to US tariff measures and threats of further action. “As a result it is difficult to plan support for our exporters at this stage.”
While acknowledging that exports to the US could face “considerable injury,” the functionary stressed India’s economy remained resilient. “Markets are not easy to replace, but what may be lost in exports to the US would be offset over time. The Indian economy is doing fine and while there can be some impact on exports due to the US tariffs, it will not be big,” they added.
The functionary also underlined that institutional linkages with Washington remain intact in areas such as defence and space cooperation. “We are buying more American crude oil and gas, but we have also not reduced Russian oil purchases,” they said.
The remarks come at a time when trade ties with the US are under a cloud, even as a thaw with China appears to be warming up with Chinese Foreign Minister Wang Yi’s visit to India for high-level border talks and an expected meeting with Prime Minister Narendra Modi. According to sources, no decision has yet been taken on allowing up to 24 per cent Chinese ownership in Indian firms engaged in electric vehicles, batteries, and related sectors by easing Press Note 3.
Domestically, the policymaker highlighted that ongoing GST reforms will have a “significant positive impact” on consumption and growth, noting the timing coincided with tariff-related uncertainties.
India is also taking comfort from S&P’s upgrade for the sovereign and five large Indian banks, which officials described as an affirmation of the country’s economic fundamentals. “These are all signals that the economy is doing fine,” the functionary said.