U.S.-China pact a mixed bag for India

U.S.-China pact a mixed bag for India

The recent U.S.-China trade truce has sparked debate over its impact on India. While reduced tariffs are expected to boost bilateral trade in high-value segments like electronics, machinery, and chemicals, it also presents opportunities for India. According to S.C. Ralhan, President of the Federation of Indian Export Organisations (FIEO), India can strengthen exports in sectors like pharmaceutical APIs, gems and jewellery, engineering goods, organic chemicals, and IT-enabled services.

However, former Director General of Foreign Trade Ajay Srivastava cautions that as the tariff gap narrows, companies that had shifted production to countries like India might move back to China, drawn by its vast manufacturing base. Additionally, this deal might increase the risk of cheaper Chinese goods flooding global markets, challenging Indian manufacturers.

For India, the key will be to leverage its strengths while staying vigilant against potential setbacks, ensuring it captures emerging opportunities in the shifting global trade landscape.

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