Trump tariffs: India should explore the option of ‘decoupling’ from the U.S. and diversifying its export destinations, says Biswajit Dhar

India should explore the option of “decoupling” from the United States and diversifying its export destinations in response to the latter’s tariff policies, noted trade policy expert Biswajit Dhar has said.

Professor Dhar, a former distinguished professor with the Council for Social Development, was delivering the keynote address at a seminar on ‘Trump tariffs and the world trade order: India’s immediate and longer-term policy options.’ The event was organised by Kerala Economic Association (KEA) in association with Gulati Institute of Finance and Taxation (GIFT) here on Saturday (August 23, 2024).

When exploring the possibility of decoupling from the U.S., India should also engage more with other developing countries, he suggested. “But that needs political thinking. There is a section in the government that thinks India is not a developing country anymore. We are now obsessed with this (idea) of being a developed country,” he said.

The U.S. tariff measures, he said, effectively marks the end of the post-war discourse on development. U.S. President Donald Trump is, in effect, stating that he does not believe in the global economy working in a manner to develop the underdeveloped regions. “The next thing is going to be the death knell for the sustainable development goals,” Professor Dhar said.

Commenting that the world was being pushed into the age of imperialism in the first quarter of the 21st century, Prof. Dhar likened the U.S. to a global hegemon seeking tributes from poorer countries to make itself great again.

S. Harikumar, senior vice-president of KEA, presided. C. Veeramani, Director, Centre for Development Studies, K.N. Harilal, Chairperson, Seventh State Finance Commission and KEA president, KEA general secretary Santhosh T Varghese, and treasurer Godwin S.K. also spoke.