Fareed Zakaria, speaking at the Express Adda, in Mumbai, Monday, said that while China would be hit particularly hard by the tariffs everyone else, including India could face them. It may also be the best time for India start negotiations on an Free Trade Agreement (FTA) with the US.
Fareed Zakaria, political analyst and CNN host, says that the pledge of Donald Trump to levy high taxes on all Chinese imports during his term is a golden chance for India.
Zakaria, speaking at the Express Adda on Monday in Mumbai, said that while China would be hit particularly hard by tariffs, everyone else, including India could face them. It may also be the best time for India start negotiations with the US about a Free Trade Agreement.
He spoke with Anant Goenka - Executive Director of The Indian Express group - and Shubhajit Roy – Diplomatic Editor at The Indian Express.
Zakaria responded, "India has a golden chance here." When asked about the impact of Trump's 10 percent tariff on all US imports in India, and how this will affect future India-US relations, Zakaria replied, "There are no limits to what Trump can do. Trump has set tariffs of 10 percent across the board and 60 percent on China. "I think he's saying, don’t worry about numbers. China will be hit particularly hard by tariffs but everyone else will have to face them."
"If you are familiar with Trump, then you must assume that this is an offer to negotiate," he said. "This is an opening salvo." India should try to negotiate bilateral trade deals with Trump. It's an opportunity to create a greater sense of regularity and create a trade corridor between the US and India. If India is forced to reduce its tariffs as a result of this, it will be very beneficial for India.
Zakaria called India the "most protectionist large economy" in the world. "Most of India's protectionism is because large Indian conglomerates, industries and companies do not want to compete."
"I believe the age of multilateral trading is over. "You will have bilateral trade agreements, and India is a great candidate to make one," said he. "And if India competes for the US market with a China which has 60% tariffs, then it will be in a much better position."
Zakaria, when asked about India’s multi-aligned policy, which allows it to align or do business with anyone it chooses without facing the sanctions that are usually associated with this, said that it was a mistake. India would gain more if it did not play footsie with everyone, and instead aligned itself with forces of democracy, and liberalism.
The Americans are very understanding about India's foreign policies. India can gain more from a political, moral and strategic perspective by aligning with forces such as democracy, openness and liberalism. "India will grow much faster if it is in close contact with the West's most advanced economic and technological centres," said the expert.
He said that India has a lot of work to do, given its $2,700 GDP per capita, as compared to the United States which has $65,000. "India does not have the same technology companies as China, or even the US. India must move forward in technology and education, and collaborate with the new global supply chain. This is more likely to occur with the West. Do you think that the Chinese will let Indians join a Chinese global supply network? It will never happen."
"The Russians do not have a global high-tech supply chain." India, from an egocentric point of view should stop playing footsie and say loudly that we are a democratic country, a part of a free world and we want stability and openness in the world. "We believe in the norms and values that define this global community, and we will benefit economically and politically," said he.
He acknowledged that China was the strategic glue in the Indo-US relation, but he also said that the glue is based on values, and India and America have deep shared values.
"India is the pro-American nation in the entire world." According to opinion polls conducted in India, 75% of Indians are positive about America. This is higher than Israel or Poland, the two other countries. "Every Indian is trying hard to get a student visa to attend an American university; nobody's lining up for Beijing or Moscow," said he.
He said Trump always had a "favourable attitude toward India... a favourable approach towards the BJP, and towards Modi. They are in a great position on multiple levels. He will push them to do more with trade.
Zakaria is a New York-based journalist and author who was a guest on Express e.Adda's show in January 2021. He has written Age of Revolutions (2024), Ten Lessons for a Post-Pandemic World (2010), The Post-American World (2007), and The Future of Freedom (2007), amongst other books.
Zakaria was asked what the most important questions he would ask Prime Minister Narendra modi if Modi were to appear on his show. He replied: "What's the best way for India to maintain and flourish its deeply pluralistic nature? India is a nation that is composed of many castes tribes religions ethnicities languages? Does he follow policies that allow this pluralism flourish?
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