In the US, Donald Trump started targeting China with the oath of presidency and with this the US-China Trade War has started. While the US imposed a 10% tariff on China on 1 February earlier this month, China has also announced a tariff of 10-15% on the US. Now the question is, what will be the effect on India in the war of this tariff? Let us know that it will prove to be a profitable deal for the country, or you may have to face loss somewhere.
America and China face to face
First of all, let’s talk about US-China Trade War, so the trump government of America has imposed a 10 percent tariff on Chinese products. The White House has claimed that 10 percent of tariffs have been imposed on all imports from China in addition to the current tariff. After this, China has also retaliated. China has announced a tariff of 10% on American coal-liquidized gas exports, while oil and agriculture-related equipment related equipment. Apart from this, China has taken more steps, on which information has been given in the Global Times of the Chinese Communist Party on Tuesday. It said that two American companies PVH Group and Illumina have been put in the list of incredible companies, taking steps in the interest of its sovereignty and security by China.
Dual advantage for India!
The answer to this question can also be easily applied by looking at the data of previous US-China Trade War. Actually, India was the fourth big beneficiary in the world at that time. During the first term of Donald Trump, a high tariff was also imposed on Chinese goods. Now even after the introduction of the fresh trade war, experts are believing, it will prove to be a profitable deal for India and can see a sharp increase in goods exported from India. India’s shipment may increase in American markets. If you look at the double benefits of India, …
First- It is being said in the reports that Indian exports are going to boom due to this move of America. This is because after putting tariffs on each other’s goods on behalf of the two countries, they will become expensive and after that India will have the best opportunity to export their goods in both markets. This can benefit companies connected with textile, garment to electronics and consumer products, besides companies associated with pharma, auto components, machinery, chemicals can also be benefited.
Second- India may benefit on the FDI front. Along with increasing the export, FDI in India is also expected to increase in FDI i.e. FDI, because due to the strictness of America, many veteran companies can consider taking out their product centers from China and in India Also, due to having a big market, she can turn here to the country.
Ever watching business in India and America
According to reports, when the US-China trade war took place during the first term of Donald Trump, India’s exports increased to $ 72-73 billion at that time. Talking about fresh trade data, India has emerged as the second largest trading partner in America in April-November of the last financial year and both have been traded by $ 82.52 billion. This includes exports of $ 52.89 billion and import of $ 29.63 billion.
India’s American tariff is monitored
In the past, Donald Trump had threatened tariffs to BRICS countries and has also taken action on China. Please tell that India is also its founding member. On the other hand, amidst the fears of tariff, Finance Minister Nirmala Sitharaman has clearly said that there is no such trade between India and America that America can impose tariffs. But then if they apply tariffs, then our eyesight remains on it, if America takes any step on tariffs on India, then we will see what we can do, our complete preparation.