US china Fight:
the rivalry between the global power and rising china is escalating and likely to deepen. the tension between these two global power has been increasing for two years covering areas of trade, technology, naval activities in the south china sea, and diplomacy. this rivalry has huse strategic implications on India.
Relocation Of companies: The us tariff can induce foreign-invested companies to relocate from china, and these companies are likely to move in India initiative, thus making in India initiative boost this.
Economic Growth: Can be hampered due to decrease in capital flow induced by the protectionist measured followed by economics.
Inflation: The reduction of goods and raw materials in India, can increase the prices of goods, and that leads to inflation.
Opportunity For India: India can also exploit the scenario by increasing its competitiveness in the segments like textiles garments, gems, and jewelry in which India has already an edge.
Stock Market: This can go down due to the cautious behavior of investors. also, the flow of foreign investment will slow down.
the following approach can be followed with the two countries are.
- India should push the US for visa reform and for foreign direct investment.
- India should develop a foreign policy outlook for both nations focussing on trade and economic development.
- India should correct its negative balance of trade with China by increasing its export of pharmaceutical and agricultural products.
- India should push for strategic defense deals at low rates due to its significance in the region.
- FDI from China and US should be encouraged by boosting the confidence of firms.
US china fight and India role:
India as an emerging economy should not miss this opportunity and it should not leave the stone unturned to boost its make in India initiative to become an export hub.
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