Impact of US-China Trade War on India
The trade wars between the United States and China have created certain opportunities for Southeast Asian countries. The Indian economy might also gain from this. India would find it very easy to access the global market due to this trade war:
- India may expand its commerce, especially in response to the high tariffs the US has placed on Chinese goods and services.
- China and the United States are two of India’s principal trading partners, and exports can close the enormous trade deficit.
- Investment flows in the automotive, agricultural, equipment, healthcare, electronics, and clothing industries should be more diverse to consider India as a reliable alternative location for production.
- To bring in foreign investors, India needs to speed up the implementation of creative governance practices and infrastructure projects.
- The only country in the world that can quickly meet market demands and match China’s operational scale is India.
- India can look for more opportunities in the areas of outsourcing, eCommerce, the chemical industry, information and communication technology advancement, and the automotive sector.
- China is more prepared than ever to give Indian exporters access to its markets, and these exporters are well capable of meeting demand from around the world.
Trade Wars
Trade Wars: A trade war is an international conflict involving protectionist measures between countries over goods and services. A trade war may start when a country applies import restrictions or increases import tariffs in opposition to another. For example, when then-President Donald Trump slapped several tariffs on Chinese imports, the U.S.-China trade war broke out in the middle of 2018. China increased tariffs on American goods in retaliation.
Trade wars can start when one country thinks another is not being fair in trade. Groups within a country, like trade unions or industry supporters, may push leaders to make products from other countries less appealing, leading to a trade war. Trade wars may be harmful to both countries’ industries and consumers. They may spread to impact other industries as well.
In this article, we will look into the meaning, history, impacts, list, examples, advantages, and disadvantages of Trade Wars in detail.
Table of Content
- What is a Trade War?
- History of Trade Wars
- List of Trade Wars
- How are Trade Wars Fought?
- Impacts of a Trade War on the Economy
- Examples of Trade Wars
- Impact of US-China Trade War on India
- Advantages of Trade Wars
- Disadvantages of Trade Wars