India ready to deal with fallout of US sanctions on Iran

Source: The Hitavada      Date: 03 Sep 2018 09:57:11



INDIA is fully prepared to deal with any fallout of the US sanctions on Iran and has made necessary provisions for every possible scenario, says a top Government adviser. However, he said, it was better to wait till the actual events happen and react quickly to them, rather than pre-commit to a certain sequence of actions.

Sanjeev Sanyal, the Finance Ministry’s Principal Economic Adviser, told IANS in an interview that while the economy was gathering pace, there were several external factors which were a concern -- including the US-China trade war, tightening of US monetary policy and rising oil prices, apart from the trade sanctions on Iran.

“We have already weighed our options... various scenarios have been thought about and in each one, certain series of sequences have been planned. Provisions have somewhat been made where necessary. In many cases, you just have to do it when it happens. The key is to react fast. “So rather than predispose ourselves to a particular line of response, what we can do is have a whole bunch of options and then as things evolve, we know which option to take. The point is to maintain optionality rather than pre-commit to a certain sequence,” Sanyal said.

Last month, the Trump Administration reimposed the first batch of Iran sanctions since Washington withdrew from the 2015 nuclear deal, with sanctions on oil sales coming into force from November. Sanctions against Iran are not the only external factor which is a concern for the Indian economy. Finance Minister Arun Jaitley, in his first address after resuming office after a long absence due to his kidney transplant, had also said that the challenges to the Indian economy were mainly from external factors such as rising oil prices and the US-China trade war.

Sanyal agreed and said: “There is the trade war looming. We have oil prices which we need to look out for. And the US is tightening its monetary policy. These are not new concerns; they have been building up for some weeks now, if not months. But these are concerns that will have an impact on us.”He said while the impact of these events is “non-quantifiable”, the best option for India is to “watch carefully what happens, how systems evolve and to respond quickly to protect national interests”. “The point is that since we don’t know how the trade war and many of these things will pan out, or oil prices for that matter, so we will have to wait,” Sanyal said.


India likely to tell US its decision to go ahead with S-400 deal with Russia



INDIA is expected to convey to the US during the upcoming ‘two-plus-two’ talks that it is going ahead with the Rs 40,000 crore deal with Russia to procure a batch of S-400 Triumf air defence missile systems, notwithstanding the American sanctions on military transactions with Moscow, official sources said Sunday.

They said India is likely to seek a waiver from the Trump Administration for the mega deal, citing its requirement for the missile system in the wake of the evolving regional security architecture as well as its close defence ties with Russia. “India has almost concluded the S-400 missile deal with Russia, and we are going ahead with it. Our position on the issue will be conveyed to the US,” said a high-level official source.

The US has imposed military sanctions against Russia under the stringent CAATSA (Countering America’s Adversaries Through Sanctions Act) law for its annexation of Crimea as well as alleged the American Presidential election in 2016.