Cultivating Europe for Indian exports
India, Jan. 13 -- The new US ambassador to India Sergio Gor said on Monday that an amicable Indo-US trade deal is very much in the realm of the possible and even the larger Indo-US partnership continues to be robust. These pages have always underlined the importance of patiently pursuing economic and diplomatic dialogue with the US rather than getting distracted by the shrill rhetoric coming from Washington. Such a policy approach, however, will also have to keep in mind the fact that the days of the US being an open export market to even its closest allies are almost over and the quid pro quo element in such a relationship will be bigger than the past.
It is in this context that it is extremely important that India cultivates its economic relationship with Europe. It is a large trading block with consumers who have the highest purchasing power anywhere outside the US, is also feeling the pinch of the about turn in US's policies, and is also invested in looking at India as a stakeholder in maintaining a rules-based democratic framework in the world unlike an increasingly imperialist US or authoritarian China. The more than 14% jump in Indian exports to Europe in the month of November - it increased to almost $8 billion - is a welcome development on this front. To be sure, not much should be read into a month's trade numbers, and it is worth pointing out that Indian exports to Europe fell by more than a billion dollars on a year-on-year basis in October.
However, what makes even a short-term reading of Indo-European trade numbers important is that trade negotiations are still continuing at multiple levels. A successful and mutually beneficial conclusion of a trade agreement can very well set a new benchmark for democracies doing trade well....
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