Modi Takes Driver Seat for Economy

New Delhi: Prime Minister Narendra Modi on Monday held an economic advisory council (EAC) meeting to review the current state of the economy amid 25 per cent tariffs imposed on it by the US. The government, however, weighed all its options, saying that the EAC will shape India’s economic response and recalibrate its global trade strategy, the sources said.

The meeting came days after US President Donald Trump imposed a 25 per cent tariff on all goods India exports to the US, and the planned doubling of the levy to 50 per cent from August 27 to punish New Delhi for its oil purchases from Russia. The tariffs are likely to impact $40 billion of non-exempt Indian exports such as gems and jewellery, textiles and footwear.

The EAC meeting assumes significance as it coincides with Chinese foreign minister Wang Yi’s two-day visit to India, beginning from Monday. It also comes days before external affairs minister S Jaishankar's visit to Russia as India seeks to step up engagements with Beijing and Moscow amid uncertainty in trade ties with the US.

Sources, however, said that seven Union ministers, including finance minister Nirmala Sitharaman also participated in the meeting at at PM's Modi's residence. Earlier, the sixth round of the proposed India-US bilateral trade agreement was postponed as a trade team from Washington deferred its visit to New Delhi. The talks were scheduled to be held from August 25 to 29. "This visit is likely to be rescheduled," an official sources said.