Context:
US President Donald Trump reiterated to impose 100 per cent import tariffs on the BRICS countries if they took any steps towards cutting the use of the dollar in global trade. The BRICS nations include Brazil, Russia, China, South Africa and India.
India’s Approach and Possible Effects
- Retaliatory Tariffs on U.S.
- India had already imposed retaliatory tariffs in 2018 when the U.S. had taxed Indian steel and aluminum, which affected 29 U.S. products.
- Sectors that might got Affected
- Primary sector: Involves extracting raw materials from nature, such as agriculture and mining.
- Secondary sector: Involves manufacturing and processing raw materials, such as construction and production of goods.
- Tertiary sector: Involves providing services, such as entertainment, financial services, and retail
- Quaternary sector: Involves knowledge-based activities, such as research and development, information technology, and education.
- Make America Great Again
- “Make America Great Again” is a package, and this agenda will definitely attract more tariffs on agriculture and industrial products.
- India-U.S Trade Status
- Indian exports to the U.S. was at CAGR (Compound Annual Growth Rate) of 10.48% over 2001-2023.
- In FY 2023-24, for the first time, the biggest trading partner of India is the U.S. that exported worth $77.51 billion and imported worth $42.2 billion.
- India’s exports to the U.S. raised by 5.57% about $60 billion.
Implications for India
- Immigration
- Stricter immigration policies could displace many Indian professionals and undocumented workers in the US.
- Indian families might face challenges due to changes in citizenship laws.
- Economic Impact
- Proposed tariffs on BRICS nations may affect trade particularly as India seeks to diversify its trade and currency agreements.
- Diplomatic Relations
- Jaishankar’s meeting with Rubio reflects Indias intent to address challenges through dialogue.
- The Quad meeting signals India’s ongoing commitment to IndoPacific stability and its strategic partnerships.
BRICS
- BRICS(named after countries joined firstly) pursued relationships of investment, and later it became an intergovernmental organization comprising nine countries namely Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, UAE.
- Founded in:
- 16 June 2009
- First Summit:
- Russia in 2009
- Chairman
- Vladimir Putin, the President of Russia.
