India should negotiate with the US on getting concession deals rather than retaliate by imposing import tariffs on steel in the face of the ongoing China-US trade war, former Niti Aayog Vice-Chairman Arvind Panagariya said Wednesday.

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Though India is not directly involved in the trade war between the US and China, but there is a possibility that it can retaliate on steel tariffs.

"So far, the stand of India has been good, the government has not resorted to any such measure as of now. Negotiations are on with the US. In-principle I think we can retaliate, but it will not fetch anything of worth to India.

"So, we should rather use the threat of retaliation and can barter on other useful negotiations (on trade) with the US. Like those concessions which are easier for the US to give and are beneficial for India," Panagariya said on the sidelines of a lecture on BR Ambedkar Lecture Series by the Comptroller and Auditor General of India (CAG).

While, delivering the lecture, he said the trade war that has ensued between the US and China presents a good opportunity for India in the sense that multi-nationals will look to relocate to those locations with cheaper labour.

Panagariya said India should keep its market open and the recent tariff hike on various items was not a good idea. Over the rising petrol prices and its impact on the Indian economy, he said though lower prices are beneficial but there are benefits on exports front when there is a rise.

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"I think India has dealt with petrol prices earlier also During 2003-04 to 2011-12, we grew at over 8 per cent and during that time also there were instances when petroleum prices went up considerably, but we were able to overcome that," he said.