Trump's latest grumblas: India must remain calm and continue

Copyright © HT Digital Streams Limit all rights reserved. The equation levy or ‘Google Tax’ on foreign service providers that India struggled with the US before trading is commonly seen as a giveaway for major technology. (Reuters) Summary The new tariff threat of the US president aimed at countries seen to face US major technological interests may not disturb India’s digital legislative agenda. This is our call. The same goes for a revival of India’s ‘Google Tax’. The Donald Trump administration has notified its extra 25% tariff on the import of merchandise from India to come into effect from August 27. The US president also warned against fresh barriers against countries whose taxes, legislation and regulations target US major technology companies. With a wide variety of Indian goods now facing a 50% levy, it is hardly important if this obstacle is pushed further up. It is bad enough that Trump’s ‘reciprocal’ levy of 25% on our consignments was higher than the 15-20% he levied on that of competing exporters. Also read: Google and Meta antitrust cases show why we need a policy spinder to promote competition in digital markets. This gap can probably be counteracted by efficiency profit in production and logistics, plus faster customs clearance. But the additional 25%penalty, which is intended to punish India for the purchase of Russian oil, puts the US market out of the reach of Indian producers in different categories. Unfortunately, this may not be the end of it. How we should respond has elicited a lively debate over our national interest as a rallying point. On one level, the economic setback will be closed from the US market for different goods. At another, Trump’s selective diplomatic aggression placed New -Delhi in a place. While China and the EU got away from Russia with greater energy supplies, the treatment of the fall was set out to India. Also read: If the termination of Google tax is, what is quo, which run is given away? Patience can be a virtue in these circumstances. If the US is forced to reconsider trade trading – as it can happen once the substance has the impact of it to reveal job losses and slower production in America, we should not be singled out again. This means that you must exclude retaliation. It also means continuing economic plans to strengthen the Indian economy in different areas. The latter should include reforms in the field of digital trade. For example, India has a digital competition bill in the works that want a level playing field for Indian players, along with major technological players who happen to be American. Any dominance of a digital market requires protection against its abuse. The bill therefore aims to combat general malpractice such as self-preference-business policies, bundled services, unfair price variations, unjustified bars on users, third-party application restrictions and the abuse of privileges for data access. It does not form what Trump has warned against, an ‘attack’ on American major technology, even if these firms resist such rules. We must make it clear that new norms would apply to all digital businesses that acquire market trading, regardless of national origin. Also read: Google Tax: India should not give up for a fair global tax regime. The equation levy – or ‘Google tax’ – about foreign service providers that India has embarked on trade talks with the US is commonly seen as a giving away for major technology. Whether or not reinstate it, it should be part of a pragmatic calculation. As this tax yielded a minor income of around £ 3.500 crore, its elimination was not a fiscal blow and pique at the beginning of events because it is no reason to revive it. Our policy focus must be on relief for those in need. Rather than providing subsidy support, we need to spend scarce resources on ways to increase our competitiveness and target new markets. We need structural changes that will reduce the cost of capital for small businesses that make up a large part of the Indian industry. A lively corporate debt market can help non-bank lenders to finance such units cheaply. An attempt to speed up payments to small providers of large companies, via an improved trading trade-in-life e-discount system, will also help them. What Trump says or does should matter less when we go along. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #Donald Trump #Tariff Hike #Technology Read Next Story