NEW DELHI: Many of the priorities of the Donald Trump administration in the US are favourable to India and the two sides are engaged in negotiations for a bilateral trade agreement that can address issues such as tariffs, external affairs minister S Jaishankar has said.
Jaishankar’s remarks, made at an event hosted by Chatham House in London on Wednesday evening, came against the backdrop of President Trump’s plans to hit trade partners with reciprocal tariffs from April 2. The move has triggered concerns about trade wars that could significantly impact the global economy.
Many of Trump’s priorities “work for us”, Jaishankar said, listing the US president’s commitment to keeping energy prices reasonably affordable and stable, his emphasis on development, his use of technology as a game changer and his openness to collaborative connectivity initiatives.
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The two sides had an “open conversation” on trade-related matters and agreed on the need for a bilateral trade agreement during Prime Minister Narendra Modi’s visit to the US last month, he said. Commerce minister Piyush Goyal is currently in Washington for negotiations on the trade deal. “One has to see where that goes,” he said.
Speaking on the foreign policy of the Trump administration, Jaishankar said: “When I look at our interests and our expectations of the relationship, there is a lot of promise that we see there.” The US administration is moving towards multipolarity and this suits India, he added.
Jaishankar dispelled the impression that the Brics grouping, which includes India, China, Russia and Iran, is unitedly working to replace the US dollar for trade settlements. India itself has no policy to replace the US dollar and Brics members have diverse positions on this matter.
“We believe working with the US to strengthen the international financial and economic system should be a priority,” he said. At the same time, India is promoting the internationalisation of the rupee to facilitate trade and investment and cashless payment by Indians travelling or living abroad.
In the context of efforts by India and China to normalise their relations following the disengagement of forces in Ladakh sector after a prolonged military standoff on the Line of Actual Control (LAC), Jaishankar said New Delhi wants a “relationship where our interests are respected, where our sensitivities are recognised, where it works for both of us”.
Following an understanding on disengagement of troops on the LAC last October, Prime Minister Narendra Modi and Chinese President Xi Jinping met in Russia and agreed to revive several mechanisms to normalise relations and address the border dispute. Jaishankar, who has met his Chinese counterpart Wang Yi as part of these efforts, reiterated that bilateral relations were disrupted because of China’s actions on the LAC in 2020.
Both sides are discussing some steps to move their relationship towards a “more predictable, stable and positive direction”. This includes resumption of the Kailash Mansarovar pilgrimage and direct flights and management of trans-border rivers. “Obviously, we would like to see it done sooner rather than later and then we’ll see what happens after that,” he said.
Jaishankar ruled out any possible role for India in ongoing efforts to end the Russia-Ukraine conflict and said New Delhi had weighed in with Moscow and Kyiv on specific issues, such as the creation of the Black Sea grain corridor in 2022 and Russian attacks on the Zaporizhzhia nuclear plant. He underscored the need for direct negotiations between Russia and Ukraine.
In the context of the Israel-Hamas conflict, Jaishankar said countries in the Middle East and the US will have to take the lead in finding a lasting solution. India has significant interests in the region, including more than 10 million Indians living there and exports worth $100 billion, and wants a “stable, safe and prosperous Middle East”.
India has taken an “objective and balanced position”, condemning terrorism and hostage-taking while simultaneously calling for humanitarian law to be observed in undertaking operations. “We do think there’s an urgent need to get relief and rehabilitation done in Gaza and we strongly advocate for a two-state solution,” he said.