New Delhi, April 5 : As the US reciprocal tariffs begin to shake up the world economy, India must consider how to approach this matter in a best possible way while safeguarding its national interest, Pervinder Singh Chandhok, who has been associated with the India-Iran and Middle East Chamber of Commerce in the UAE, said on Saturday.

In an interaction with IANS, Chandhok said he has great respect for US President Donald Trump. "It is his desire to grow his country in a very big way, and he has decided to introduce new tariffs unilaterally - something that most countries still do not agree with," said Chandhok, a second-generation Indian businessman who has lived in Tehran.

"This has now become a global issue, and India, in particular, must also consider how to approach this matter in its own national interest," he stressed.

The tariffs levied on India (27 per cent) are the lowest among its Asian peers, compared to 34 per cent on China, 36 per cent on Thailand, 32 per cent on Indonesia, and 46 per cent on Vietnam.

This is expected to give India a comparative advantage over these countries and result in an increase in exports in some sectors over the long term, according to the latest SBI report. India's exports to the US constitute only 4 per cent of its GDP, so the direct impact of the 27 per cent hike in tariffs on Indian goods will have only a 'limited' impact, according to the report released on Friday.

On a question how can India and Iran further enhance the trade relations, Chandhok said that India and all the Middle-Eastern countries - including those with whom we currently do not have trade due to third-country sanctions - should work to expand the rupee trade mechanism as much as possible.

'We should also introduce preferential tariffs so that the business can grow to its fullest potential,' he told IANS.

Meanwhile, Iran is looking at ways to resume supplying crude oil to India and is keen on expanding the overall trade basket, including in the petrochemical sector, through the strategically-located Chabahar port.

India stopped importing oil from Iran in 2019 after the after the United States refused to extend exemption from sanctions on the country.

Regarding procurement of oil from Iran, Chandhok said: "Keeping in view the global policies, practices and the global sanctions in place, India has to come up with its national interest and decide which way to go. So, the national interest will be the guiding factor for the oil purchases."

/IANS