There is a complete possibility of starting trade war between the US and China. US President Donald Trump announced a 54% tariff on China, after which China has announced a 34% tariff on American goods on Friday, which has been seen on the commodity market around the world including American markets. In such a situation, India is also keeping a close watch on this development and is preparing its strategy. Experts are advising India not to support any country directly.
According to a report by The Economic Times, the Government of India is closely watching the danger of this trade war. Officials say that they are keeping an eye on the situation. A big danger of this war is that China can dump its cheap goods in countries like India instead of America. This can cause damage to local businessmen in the Indian market, so the government has already started preparing to stop it.
Opportunities for India in trade war
Due to the trade war between the US and China, it will see its pressure on countries around the world including India. Which is clearly visible after the tariff announcement from China. However, where there are many challenges between tariff war. At the same time, on the other hand there is also an opportunity for India. Experts believe that India should take advantage of this opportunity. For example, if the US and China do less trade than each other, India can fill those empty spaces. Indian companies can increase their penetration in the American market. Also, the goods which used to come from China earlier. They can now replace goods made in India. But for this, India will have to be careful in its policies, so that it does not appear to be tilted towards any one side in this war and its work is done.
A government official said that we are monitoring the situation. India does not want this trade war to harm its economy. Therefore strict steps can be taken to prevent dumping. India is also trying to promote its manufacturing, so that it can become self -sufficient and get less goods from outside. In this trade war, India can change its business without changing its strategies. Because commercially America and China are major nations.