India's Diplomatic Gambit: Navigating US Tariff Turbulence

India's strategic choice to prioritize diplomacy over retaliation in response to Trump's tariff announcements is being praised by experts. This approach is seen as crucial for future bilateral trade negotiations, potentially benefiting the Indian economy despite domestic political challenges.

India's decision to prioritize diplomacy over retaliation in responding to President Donald Trump's sweeping tariff announcements is being hailed as a 'remarkably smart' move by trade expert Mark Linscott. This approach has positioned India favorably for long-term economic advantages, according to Linscott.

Despite political uproar, Prime Minister Narendra Modi's government refrained from imposing counter-tariffs, thereby setting the stage for successful bilateral trade negotiations. Linscott emphasized that retaliation often leads to an escalation, creating a 'downward spiral' in trade relations.

Both nations are committed to negotiating a bilateral trade agreement, with efforts being made to resolve tariff disputes. There remains optimism for an early resolution, potentially leading to the lifting of tariffs against India while discussions continue on opening Indian markets to American agricultural products.

(With inputs from agencies.)