The US is seeking greater market access in India and a reduction in the trade deficit, while India is looking for preferential access to the American market in return. “That’s the trade-off,” he said.
“If I say, ‘Look, I’ll treat you incredibly kindly on the things that are really important to you,’ then you bring down your tariffs and give us access. Let’s find the proper place in the middle.”
He added that early participants in trade deals typically receive better terms. “India is trying hard to be one of the earlier countries, which I appreciate.”
Underlining the importance of having the right person on the other side for negotiations, Lutnick said that “if they put a normal trade minister, it’s an endless set of talking and no outcome because they’re used to saying, this kind of deal would take three years, we’ll get this done in two years’, and that’s not really fun for me.”
On what he sees as the vision of the India-US relationship, Lutnick said that it is ‘unusual’ that President Donald Trump is the only person in the administration elected by the full United States of America and Prime Minister Narendra Modi is elected by the people in India.
“If you think about the world, how many other leaders actually are elected by their country,” he said, adding that it is ‘very, very rare’.
“So that connection is pretty unique because it’s rare. And so their relationship is very strong and very positive. And so that gives an easy path to me to do trade negotiations, because we start from a very positive place.”
Lutnick, however, said there were certain things India did, like buying military gear from Russia that ‘rubbed ‘the United States the wrong way’ but the Indian government is addressing such issues ‘specifically and directly’.
“The Indian economy is extraordinary, your human capital capacity is amazing, your growth rate is amazing. But, you know, there were certain things that the Indian government did that generally rubbed the United States the wrong way,” Lutnick said.
“For instance, you generally buy your military gear from Russia. That’s a way to kind of get under the skin of America, if you go to buy your armaments from Russia.
So I think India is starting to move towards buying the military equipment from the United States, which then goes a long way,” he said.
Lutnick also cited the example of India being a part of the BRICS grouping (Brazil, Russia, India, China and South Africa).
“Neing a part of BRICS, which is, ‘oh, let’s move to not support the dollar and dollar hegemony’. That’s not really the way to make friends and influence people in America,” he said on BRICS seeking to create its own currency.
India has reaffirmed its engagement with BRICS while making it clear that it is not part of any initiative to undermine the US dollar.
“So, you know, the President calls that out directly and specifically and the Indian government is addressing it specifically and directly and that’s how you move on to a really positive place – put it on the table, address it straight on, resolve it straight on, and get to a really good place.
And I think that’s where we are,” Lutnick said.
(With inputs from PTI)
