India's Cautionary Stand Against US 'MASALA' Trade Deals
An Indian economic think tank has advised caution in India’s ongoing trade negotiations with the US, warning about 'MASALA' deals, implying leverage-driven agreements. There is concern over these politically motivated and transactional demands that could compromise crucial sectors like agriculture. Experts suggest India should carefully approach the proposed Bilateral Trade Agreement.
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- India
An economic think tank in India has advised the country to exercise caution in negotiating a trade deal with the United States, reflecting concerns about what are being termed 'MASALA' deals—Mutually Agreed Settlements Achieved through Leveraged Arm-twisting. These deals, according to Congress officials, are politically driven and present significant risks.
The Congress's general secretary for communications, Jairam Ramesh, warned that past experiences with Masala Bonds necessitate a prudent approach. Ramesh noted historical references where foreign companies issued rupee-denominated bonds, indicating that this economic landscape needs careful navigation.
With the US engaged in negotiations with over 20 nations while imposing tariffs on major partners like the EU and Mexico, experts highlight the need for India to avoid a rushed deal. Emphasizing the importance of core sectors such as agriculture, experts believe agreements made under pressure could be politically unstable and detrimental in the long run.
(With inputs from agencies.)
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