Aiming to capitalize the trade war between US and China, India hopes a conducive environment for its job sector. The differences between the countries have provided a nurturing ground for India’s economy.
The trade war had its inception, with the President of the United States of America, Donald Trump, sternly despising China, accusing them for unfair trade practices, and forgery. The statement stirred a wave of heat between the two superpowers. Hence, trade tensions between the two meant economic implications for other nations, including India.
The implementation of tariffs will possibly lead to a full-blown trade war, which can impact India on parameters such as its stock market, currency valuation, tariffs and duties between US and India.
Without the presence of Chinese goods in the American market, Indian companies might come to rescue, and fill the gap of around $8-10 billion in the US market. Seen as an opportunity, India aims to export various supplies, ranging from auto parts to chemicals. “It could be $2-3 billion or more, depending on how quickly and effectively Indian companies move,” one of the sources told the publication.
Compiling a list of 180 products that can be shipped to the US, they can be a substitute for approximately $10 billion worth of Chinese goods, targeted by trump’s tariff impositions.
However, with India’s aspirations to become Asia’s biggest manufacturing hub, its trade-ties with America might not come into action due to a $27 billion deficit Washington had with its India, last year.
In order to meet India’s investment needs, the country must reflect its competitive advantage to prospective investors. To address trade deficit concerns between India and America, bilateral negotiations between both the nations are required.
Healthy trade conditions are being fostered between India and US, since June. While India prompted tariff hikes on 29 American products, Prime Minister Narendra Modi’s government has been reluctant to implement the impositions, to safeguard the national interests.
The regulatory and governmental impositions in India, need to be reformed, in order to grasp the advantage of foreign investment.
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