Finance Minister Nirmala Sitharaman today said India is conscious and watchful of the US tariff-related uncertainties and their possible impact on the country.

During an interaction at the Open House with FM event with RPSG Group Chairman Dr. Sanjiv Goenka, Sitharaman said India will respond to US tariffs closer to the actual announcements by the US, while stressing the fact that the government is closely studying the emerging tariff situation along with the collateral impact of tariff actions on other nations like China and Mexico, among others.

“On the issue of US tariff-related uncertainties, until it is actually pronounced, one would not know what one has to face, or work against. Till then, it is all about what if? Whether you are going to stand up to it, fight it, counter it or negotiate through it, all of it will have to be tested when it is actually in our face,” Sitharaman said.

“So, we are conscious of it. We are watching it. We are also looking at the collateral impact on us due to an action taken on someone else like China, or Mexico. Even that is being assessed and studied. We are readying ourselves. But the ways and means in which we will handle it can be decided only closer to the environment at that time,” Sitharaman added.

On Disinvestment

During the interaction, the finance minister told the industry leaders present at the event that the government is committed to disinvestment and there is no U-turn or change of position on it. She also apprised the industry of the issues being faced by the government on disinvestment while also committing that it is a work in progress, despite delays.

“We have had our share of difficulties and challenges. It is no secret that many of our public sector undertakings, which the Cabinet has cleared for disinvestment, are not yet ready institutionally for going to the market. Getting them ready for the market, inclusive of internal institutional arrangements, valuation, professionalising the body, complying with certain listing norms is taking time,” Sitharaman told the industry leaders.

“These things are being done now. They are old institutions. That is taking time. But despite this, I would like to tell that in the interim, it is not they are just waiting to be sold off. We are ensuring that they are professionally run, valuations are becoming better, and they become robust. So that is about disinvestment. We are on course and we will continue to be moving on it,” said Sitharaman.