US Secretary of Commerce Howard Lutnick said that India’s purchase of military equipment from Russia and its alignment with BRICS, which advocates reducing dependence on the US dollar, have “rubbed the United States the wrong way”.
Speaking at the eighth edition of the US-India Strategic Partnership Forum (USISPF) Leadership Summit, Lutnick also said that US President Donald Trump deeply admires India and the two countries are going to have a “great relationship together”.
“The Indian economy is extraordinary, your human capital capacity is amazing, your growth rate is amazing. But, you know, there were certain things that the Indian government did that generally rubbed the United States the wrong way,” the Commerce Secretary said.
“For instance, you generally buy your military gear from Russia. That’s a way to kind of getunder the skin of America, if you go to buy your armaments from Russia. So I think India is starting to move towards buying military equipment from the United States, which then goes a long way,” he added.
Regarding India’s participation in Brics (Brazil, Russia, India, China, and South Africa), Lutnick said the group’s stance to move away from supporting the US dollar “is not really the way to make friends and influence people in America”.
“So, you know, the President calls that out directly and specifically and the Indian government is addressing it specifically and directly and that’s how you move on to a really positive place – put it on the table, address it straight on, resolve it straight on, and get to a really good place. And I think that’s where we are,” Lutnick said.
Turning to trade, Lutnick conveyed a strong belief that a US-India trade deal will materialise “in the not too distant future”.
“So the idea is when they put the right person and India put the right person on the other side of the table, and we’ve managed, I think, to be in a very, very good place. And you should expect a deal between the US and India in the not too distant future because I think we found a place that really works for both countries,” he said, adding that he is “very optimistic” about it.
Further, Lutnick pointed out India’s high tariff regime as a longstanding issue, calling the country “very protectionist”.
“They have 100 per cent tariff on this, 100 per cent on that. And if you ask them why, the answer is, ‘I don’t know why. It just is’,” Lutnick said. He, however, indicated that both sides are now working to bring tariffs down to “reasonable and appropriate” levels to enable a more balanced trade relationship.
The Commerce Secretary also referred to the leadership dynamic between President Donald Trump and Prime Minister Narendra Modi, calling it unusual and positive. “President Trump is elected by the entire country, and so is Prime Minister Modi. That makes their relationship unique,” Lutnick said.