New Delhi, Jul 31 (PTI) With the US announcing the imposition of 25 per cent tariff and penalties on India, Congress MP Shashi Tharoor on Thursday said it may be just a "bargaining tactic" as trade negotiations are on, and asserted that "we must give strong support to our negotiators" to find the best possible deal.

Tharoor, however, added that if a good deal is not possible, "we may have to walk away".

Tharoor also took a swipe at the US, stating that it works with Pakistan to develop"oil reserves", and they may have "some illusions" on finding oil in Pakistan for which he wishes them luck.

"We were all one country at one time. I have not seen any reports that there was a great deal of oil to be found in what is today Pakistan," Tharoor told reporters in the Parliament House complex.

"But the Americans want to look, so let them look. We found some oil in Bombay High, we found some oil in Assam. But we are importing 86 per cent of the gas needs. So we don't know how much they are going to find," he said.

Tharoor's remarks came a day after US President Donald Trump announced 25 per cent tariff against India, plus a "penalty" for its trade with Russia.

"It is a very serious matter for us for a number of reasons. Twenty-five per cent plus an unspecified penalty for buying oil and gas from Russia could take it up to 35 per cent or 45 per cent, we dont know how much. There is even talk of 100 per cent penalty, which would destroy our trade with America," Tharoor told reporters.

"It may be just a bargaining tactic as you know that trade negotiations are still going on and therefore there is a possibility that in the course of the negotiations, this may come down. If it doesn't, it will certainly damage our exports because America is a very big market for us," the MP from Thiruvananthapuram said.

Noting that Indian exports to the US alone are about USD 90 billion, Tharoor said, adding that if there is a dramatic drop, it will hurt India.

He pointed out that some estimates are already coming that India might end up losing half a per cent of the GDP if it does not have the American market.

"On the other hand, if their demands are completely unreasonable, our negotiators have every right to resist. For example, we have 700 million Indians who are dependent on agriculture, and we cannot risk their livelihoods to make America happy," Tharoor said.

Stressing that the US has to understand India's needs as well, Tharoor said, "Actually, our tariffs on America are not that unreasonable. It is about 17 per cent on an average. American goods are not priced that competitively that they can sell so much in the Indian market.

"If Mr Trump thinks it is a big market and 'we can sell a lot of items', they have to look at their own prices being competitive. Most of the things they want to sell us as manufactured goods are cheaper from other suppliers," the Congress leader pointed out.

Noting that everyone will buy what they can afford to buy, Tharoor said the Americans will have to realise this as well.

"I do believe the American stand has not been totally reasonable and our stand, we can possibly show some flexibility, but there is a limit to the flexibility we can show," he said.

Tharoor wished the Indian negotiators "good luck and good courage", asserting that India can't afford to buckle under pressure as it has to keep its national interest as number one priority.

Stressing that India has a strategic partnership with the US which is of some value to it, he said there has to be reasonable conversation among "friends".

"We cannot have a situation where one side makes unilateral demands and we as a country have to take it lying down. That will not happen. India is a proud and self-respecting nation, we have our interests, we have our red lines. On that basis there will be some things we will discuss and some things we cannot... On some things they will also have their red lines," he said, adding that there has to be some give and take.

Talking about India's trade deal negotiations with the US, Tharoor said they were challenging and pointed out that "we are negotiating with many countries".

"We have ongoing negotiations with the EU, we have concluded a deal with the UK, and we will be talking to other countries also. Worst comes to worst, we will have to diversify out of the American market. We are not out of options," he said.

India wants and values the relationship with America but if the US is completely unreasonable in their demands, it will have to go elsewhere, Tharoor said, adding that it is the strength of India that it is not totally an export-dependent economy.

"We must give strong support to our negotiators to find the best deal possible. If a good deal is not possible, we may have to walk away," Tharoor said. PTI ASK ARI