Protect our surplus.

"India is looking at levying import duties on some products made in the United States to counter Washington's tariffs on steel and aluminium products, a document submitted to the World Trade Organization shows." "It did not say what kind of products might be subjected to tariffs." Reuters. "The US remained India's largest trading partner for the fourth consecutive year in 2024-25 with bilateral trade valued at USD 131.84 billion." India enjoyed a trade surplus of $41.18 billion with the US while the trade deficit with China widened to $99.2 billion. ET. Talk about cutting off our national nose (wikipedia). "A new tax proposal by House Republicans could significantly impact Non-Resident Indians (NRIs) living in the US. The bill, introduced on May 12, 2025, includes a controversial provision imposing a 5% tax on international money transfers made by non-citizens." FE. "Overseas Indians sent home a record $129.4 billion in 2024, with the highest ever inflows of $36 billion in the December quarter alone." Mexico was a distant second with $68 billion." ET. Such an enormous amount of foreign exchange helps our balance of trade, reduces our current account deficit and supports the rupee. In 2023-24, remittances from the US were the highest at 27.7% followed by the UAE at 19.2%. "It seems that remittances from white-collar Indian employees (US) have now overtaken, or are in the process of overtaking, remittances from blue-collar workers (UAE)." And "inflows from the US, UK, Singapore, Canada and Australia contributed more than 50% of the remittances," wrote Rajrishi Singhal. "Until now, remittances were not subject to US taxation, making this a stark policy reversal." NRIs are calling this a "new form of stealing". FE. Is it? India does not allow unconditional transfer of money abroad. An Indian citizen "can invest in overseas securities and properties as well as transfer funds for maintenance of relatives abroad up to $250,000 a year." But once investments mature or are sold off, the money must be reinvested or brought back to India and cannot be gifted to children living abroad. ET. "India has seen limited success so far in capturing the 'China Plus One strategy', while Vietnam, Thailand, Cambodia and Malaysia have become bigger beneficiaries, according to a report of government think tank Niti Aayog." ET. "In recent years, criticism has been leveled at the Indian government for not taking advantage of the China-plus strategy at the extent that Vietnam has. Ironically, at a time of global trade shifts, it is precisely those policy failures that have meant that India stands to be relatively more insulated from global trade disruption." Mint. So, our success lies in failure. And, we want to increase the failure by imposing more tariffs on the US. Rational strategy.