As the July 9 deadline for reaching a deal approaches, the possibility of a 26% retaliatory US tariff looms. However, Prasad supports India’s cautious approach, arguing the country should not rush into an agreement or succumb to external pressure. She believes that holding firm is essential to safeguard national interests and that strategic patience will ultimately benefit India in the long term.

Addressing concerns over the economic impact of tariffs, Prasad underscored that India is a domestic demand-driven economy, not reliant on exports for growth. With trade contributing less than 2% to India’s GDP, she argued that potential short-term export losses could be mitigated. She also suggested that US businesses relying on Indian goods might lobby against aggressive trade measures, creating internal pressure within the US.

Prasad also criticized the inherent imbalance in the ongoing negotiations, pointing out the disparity between the two nations’ economies. As a low-middle-income country, India cannot negotiate on equal footing with the US, and should remain wary of deals that do not serve mutual interests. She cautioned against framing talks as between equals when economic realities differ greatly.