Israeli Ambassador Reuven Azar says US tariffs on India are temporary

Reuven Azar/ Pic/PTI

With global trade operations feeling the disruptions after Trump tariffs, Israel's Ambassador to India, Reuven Azar, on Thursday said that he believed that US tariffs on India are a temporary issue. The Israeli Ambassador further said that the trade-related issue between the two countries will be resolved through dialogue.

The Israeli Ambassador to India, Azar, while speaking to the media, further said that "India-Israel relations will not be compromised."

Furthermore, he stated, "I don't think it has any effect [on India-Israel relations]. I'm not an expert on the Indian market. I know that when it comes to the trade between India and Israel, it's not going to be undermined. Well, I hope this is a temporary issue that will be solved because I think that countries have a common interest to continue cooperating," as cited by news agency ANI.

The immediate impact of the recently imposed US tariffs on Indian exports may appear limited, but the secondary and tertiary effects on the economy pose significant challenges that must be addressed, as highlighted in a report by the Department of Economic Affairs under the Ministry of Finance.

According to the report, the initial impact on exports is contained; broader effects could emerge in areas such as supply chains, inflationary trends, and the competitiveness of Indian goods in global markets.

The report further stated that, "While the immediate impact of recent US tariffs on Indian exports may appear limited, their secondary and tertiary effects on the economy pose challenges," as per ANI.

To navigate the challenging global trade environment, the Prime Minister has announced a set of policy initiatives aimed at boosting growth and strengthening the economy.

Furthermore, the administration is planning to implement the Next-Generation GST Reforms in the following months. These measures will focus on lowering the tax burden on necessary commodities, which is projected to bring direct relief to consumers while increasing consumption demand.

The research also stated that a recent rating improvement is projected to give additional momentum by cutting borrowing rates, attracting more foreign capital inflows, expanding access to global financial markets, and reducing inflationary pressure. As a result, firms will have lower input costs, which will help to drive economic growth.

(With inputs from ANI)