India witnessed some economic difficulties to push US President Donald Trump to balance bilateral trade with dangers of mutual tariffs, warning Zoho founder Sridhar Vembu. He said that amidst the threats of Mr. Trump, India will soon need to increase its imports from the US to balance bilateral trade, which can put pressure on the current account deficit of New Delhi until domestic production early Does not grow from
Mr. Wambu said in a vessel on X, “As a little oversmimphalified mental model, India exports software services to the US and imports consumer goods from China. Surprises with America matches deficit with China. . “
He said, “Now India will have to import more iPhones, GPU, LPG, Nuclear Plant, Fighter Jets, Whiskey and America.”
He said that this adjustment could put pressure on India’s current account deficit until domestic production increases quickly.
“To not blow up the current account deficit, India must find ways to reduce the imports of consumer goods from China, and means an increase in domestic production. Since it may not happen overnight, a short time imported consumer The prices of goods may increase – it appears as inflation, “he said, Indian manufacturers will have to move and establish their ability and” know when needed. “
As a slight oversmimphalified mental model, India exports software services to the US and imports consumer goods from China. The surplus with the US matches the deficit with China.
Now India will have to import more iPhones, GPU, LPG, nuclear plant, fighter (
– Sridhar Vambu (@Svembu) 15 February, 2025
India’s trade with America and China
Since the Covid-19 epidemic, India’s trade surplus with the US has doubled, increased from $ 17.30 billion in 2019-20 to $ 35.33 billion in 2023-24, as well as with a remarkable change in the export basket. While exports of electronic and engineering goods increased, traditional exports such as gems, jewelery and textiles remained largely unchanged.
At the same time, India’s trade deficit with China declined by $ 85.1 billion in the financial year 2024, with the imports of Beijing increased by 9.8 percent year-on-year between April and October 2024. China imports with imports with India’s top import source. Price of $ 65.89 billion during that period.
The number underlines an increasing economic anxiety, as exports to China increased to just $ 8 billion during this period.
Trump’s threat
Mr. Trump warned on Saturday that “America will charge a mutual tariff, which means, whatever countries charge in the United States, we will pay the fee on them- no one else, no less!”
Earlier on Friday, highlighting the trade imbalance between Washington and New Delhi, the US President said that the Indian tariff is a “major problem” on cars such as 70 percent as 70 percent. He said that American sales of oil and gas will burn the US trade deficit with India.
“India imposes 30, 40, 60 and even 70 percent tariffs on so many goods, and in some cases, more than this. As an example, 70 percent tariff on American cars going to India is very much Makes those cars to sell.
“We want a certain level of sports ground, which we really think we deserve, and it also does in fairness. So we are going to work hard on it, and we can differentiate very easily With the sale of deficit, oil and gas, LNG, of which we have more than anyone in the world, “said Mr. Trump.
