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"We may see some kind of agreement where both sides agree on a set of tariffs": Dhruva Jaishankar

Ahead of Prime Minister Narendra Modi's upcoming visit to the United States, Dhruva Jaishankar, Executive Director of the Observer Research Foundation America on Tuesday (local time) suggested that an agreement might be reached, where both sides agree on a set of tariffs and arrangements to prevent a tit-for-tat trade dispute.

ANI Feb 12, 2025 03:51 IST googleads

Executive Director of the Observer Research Foundation America, Dhruva Jaishankar (Photo/ ANI)

Washington DC, February 12 (ANI): Ahead of Prime Minister Narendra Modi's upcoming visit to the United States, Dhruva Jaishankar, Executive Director of the Observer Research Foundation America on Tuesday (local time) suggested that an agreement might be reached, where both sides agree on a set of tariffs and arrangements to prevent a tit-for-tat trade dispute.
Speaking with ANI, Dhruva Jaishankar highlighted the possibility of an agreement on tariffs between India and the United States.
"We may see some kind of agreement where both sides agree on a set of tariffs and another arrangement to ensure we don't get into a tit-for-tat type of trade dispute over the next 4 years...India is a very large producer of steel globally, so the possibility of this escalating is real," Dhruva added.
He also said that the issue of illegal Indian immigrants and deportation by the US will also be addressed.
"India had a long-standing policy not just with the US but other countries as well...If they are identified as Indian and they have overstayed their visas or if they are undocumented migrants, India is willing to take them back...India has been working with many countries to find mechanisms for identification...This is not a new policy...However, the optics of it, obviously, played very negatively in India...Talking very seriously about what needs to be done and how this can be better managed will be helpful," Dhruva told ANI.
The ORF Executive Director also underlined four main areas to watch out for in the outcome of the meeting between PM Modi and President Donald Trump -- Re-establishing personal rapport -- PM Modi and President Donald Trump will aim to re-establish a strong personal rapport, crucial for advancing bilateral ties; Structured engagement -- The continuation of existing high-level formats for structured engagement between India and the US will be essential for resolving outstanding issues; Addressing trade and immigration challenges -- Although a resolution is not expected soon, clear pathways for resolution over the next year will be essential and Quick wins for both sides: Specific deals that benefit both countries, particularly in job creation and trade deficit reduction, will be a key area of discussion.
"I would look for 4 different things in the outcome of this meet...one, what kind of personal rapport they can reestablish...second, continuation of existing high-level formats for structured engagement between India and US...three, is there a pathway to address the difficulties in the relationship, particularly tariffs and immigration...I don't expect a resolution soon...but some clear pathways to resolve those over the next year...finally, some very quick wins for both sides, which are specific deals that allow Trump to say that this is helping with the trade deficit and job creation in the US but at the same time contributing in ways to both Make in India and technological development in India," said Dhruva.
He also said that defence agreements will also be a significant area of focus, with two types of agreements expected -- Acquiring existing US inventory -- India will seek to acquire more US aircraft and other equipment and co-production and technological benefits: India will aim to secure co-production or co-technological benefits for new platforms, aligning with its priorities.
"There will be two kinds of defense agreements, partially reflective of the different priorities of the US and India. There are certain items which India already has, such as inventory from the US, which India wants to acquire more of, aircraft for example...For the US, it is important because it will help in creating jobs and narrowing the trade deficit, which is a big priority for President Trump...Another set of issues would be new platforms, where India will want to see some co-production or co-technological benefit for India as well," he explained.
PM Modi will visit the US on February 12-13 at the invitation of US President Donald Trump. This will be the first meeting between the two leaders since President Trump assumed office for his second term. (ANI)

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