Kerala seeks assurances from Centre on combating U.S. tariffs

Kerala Finance Minister K.N. Balagopal has sought concrete assurances from the Bharatiya Janata Party (BJP)-led Central government on how it planned to stand up to the U.S.’ prohibitive tariffs on imports from the country.

Mr. Balagopal told a press conference on Friday that Prime Minister Narendra Modi has signalled that he would take a strong stance against the U.S.’ disruptive move. 

He also criticised the Modi government for striking critical trade agreements with foreign nations, including the recent one with the United Kingdom, without consultations with the States and discussions in Parliament. 

‘Imperialistic demands’

Mr. Balagopal said India could play to its strengths. “India is the fastest-growing economy. It has the largest free market in the country with significant and burgeoning purchasing power. The U.S. wants to control our market and turn it into a dumping ground for its products. There is no incentive for India to surrender to the U.S.’ imperialistic demands,” he said. 

Mr. Balagopal said the country could do well to “remember how colonial rulers destroyed” the country’s domestic handicraft and textile industry by inundating India with factory-made goods from Manchester in England.

Mr. Balagopal urged the Centre to call a meeting of States to discuss how to alter India’s economic and trade trajectory in the light of increasing U.S. free market imperialism.

He said the Gulati Institute of Finance and Taxation (GIFT) would hold a round-table of economists and other stakeholders on August 16 to weigh the impact of prohibitive tariffs on Kerala’s economy.