The government is quick to react that the US President Donald Trump's attempt to stifle India's trade would only impact a fraction of India's trade flows. But surely its timing -- just before the general elections -- may have some political consequences.
The move comes as two countries work on a trade package to address each other's concerns. It is being seen as a setback in India-US bilateral relationship, in the area of trade and economy.
Now the US wants to scrap trade concessions to India, the largest beneficiary of the Generalised System of Preferences. Under the GSP programme, India exports over $5 billion worth of goods to the US duty-free. There have been concerns that the government may have been failed to assure the US that it would provide equitable and reasonable access to its markets in various sectors.
While the immediate reaction could have been to impose retaliatory tariffs on US goods, New Delhi has decided against any such move.
This may be an immature move by the US, but both Trump and Modi should continue to talk and sort out thorny trade issues. It's important that the world's two largest democracies focus more on keeping a check on an increasingly assertive China. The Quadrilateral Security Dialogue between the US, India, Japan and Australia should continue without any break.