Trade possibilities: Latest numbers should not distract policymakers

Strong November export growth offers relief, but trade uncertainty persists as India races to seal a deal with the US amid tariffs, capital outflows and rupee pressure

One of the biggest global economic issues this year has been the radical shift in America’s trade policy. United States (US) President Donald Trump imposed the so-called reciprocal tariffs on all major trading partners and has negotiated new terms of trade with many of them. India has stood out as an outlier in this scheme of things. Aside from the reciprocal tariffs, the US has imposed a penalty in terms of an additional 25 per cent tariff on India for importing Russian oil. India has not been able to resolve the issue. Since the US is India’s largest trading partner,