India handling reciprocal tariffs issue wisely with intent to hike trade with US by 2.5 times: Piyush Goyal

Mumbai: Indian Union Commerce and Industry Minister Piyush Goyal on Thursday said that India is handling the US reciprocal tariff issue wisely, with a focus to increase its trade with the US by two and half times.

Speaking to reporters in Mumbai, the Union Minister assured that India is already ahead in this race, and that discussions were making good progress.

He further said that Prime Minister Narendra Modi and President Donald Trump had decided in February to strengthen bilateral relations.

"India is handling this matter very wisely. Prime Minister Narendra Modi and President Donald Trump had decided back in February to strengthen our bilateral relations and sign a trade agreement that will make trade between India and the United States easier. This will also increase trade up to USD 500 billion, which is about two and a half times more than before," Goyal said.

"It will create more job opportunities for the people and further strengthen the country's economy. I believe that India was already ahead in this race, and our discussions are making good progress," the Minister said.

United States President Trump on Wednesday announced a 90-day pause on his "reciprocal tariffs" on nearly 60 countries. However, he did not extend it to China, instead raising the tax rate on Chinese imports to 125 per cent. The tariffs on China, he said, would be imposed with immediate effect from the previously announced 104 per cent tariffs that had kicked off on Wednesday.

China also announced an additional import levy on US goods with an 84 per cent tariff from Thursday.

Meanwhile, Minister Goyal, during his meeting with industry representatives in Mumbai, assured them that the Government is working on a bilateral trade agreement with the US as was decided between Prime Minister Modi and US President Trump in February.

Goyal assured the exporters that the government is "keeping India's interests at the forefront" and expressed hope that the bilateral trade agreement will "power" the economy towards Viksit Bharat 2047.