Israel’s Ambassador to India Discusses US Tariffs and Trade Relations

Israel’s Ambassador to India, Reuven Azar, expressed optimism regarding the ongoing discussions surrounding US tariffs imposed on Indian goods. In remarks made on August 28, 2025, Azar described the tariffs as a temporary issue that can be addressed through dialogue, emphasizing that they will not undermine the strong ties between India and Israel.

Speaking to ANI, Azar stated, “I don’t think it has any effect [on India-Israel relations]. I’m not an expert on the Indian market. I know that when it comes to the trade between India and Israel, it’s not going to be undermined. Well, I hope this is a temporary issue that will be solved because I think that countries have a common interest to continue cooperating.”

The impact of the recent US tariffs on Indian exports is a subject of concern among economic analysts. According to a report from the Department of Economic Affairs under the Ministry of Finance, the immediate effects appear limited. However, the broader implications could significantly affect supply chains, inflation, and the competitive stance of Indian goods in global markets.

The report highlights that while the direct impact of the tariffs may be manageable, the secondary and tertiary effects could create substantial economic challenges. It stresses the importance of addressing these potential hurdles proactively to maintain India’s economic stability.

In response to the evolving global trade landscape, the Prime Minister has unveiled a series of policy initiatives aimed at boosting economic growth. One notable initiative is the establishment of a Task Force for Next-Generation Reforms. This task force will focus on simplifying regulations, reducing compliance costs, and creating a more conducive environment for start-ups, micro, small, and medium enterprises (MSMEs), and entrepreneurs.

Additionally, the government is preparing to implement Next-Generation GST Reforms in the coming months. These reforms are designed to alleviate the tax burden on essential goods, which is expected to provide direct relief to households and stimulate consumption.

The recent upgrade in India’s credit rating is anticipated to further enhance economic momentum. This upgrade is expected to lower borrowing costs, attract more foreign capital, expand access to global capital markets, and ease inflationary pressures. Such developments are projected to reduce input costs for businesses and support overall economic growth.

As India navigates the complexities of global trade, the collaboration between nations remains crucial. Azar’s comments reflect a broader sentiment that through dialogue and cooperation, challenges can be addressed effectively, ensuring that vital trade relationships continue to thrive.