Trade tussle between the US and China provides potential opportunities for India in certain sectors (according to Pavan K. Varma)
Revised Article:
In the face of Donald Trump's brazen tariff war and the global turmoil it's causing, India finds itself at a crossroads. This crisis presents India with a setback, yes, but also a massive opportunity. Can we seize this chance to reinforce our economy and better prepare ourselves for similar challenges in the future?
India needs a strategic, calculated response that safeguards its financial interests, Exploits opportunities, steers clear of impulsive reactions, and remains grounded in practicality rather than populism. Mindless retaliation, much like the 2019 move to slap tariffs on US goods in response to steel and aluminium duties, did little. Instead, India should focus on bolstering its domestic economy, diversifying trade partnerships, and positioning itself as a dependable alternative in an increasingly fractured world order.
Navigating the Diplomatic Highway: Balancing Government's EV Dream vs. India's Reality by Dilip CherianChina may be able to weather a full-blown trade war due to its relatively robust economy, but India has options too. The US-China trade war could lead to a global economic downturn, supply chain disruptions, and multinational companies reconsidering their investments in Asia. This volatile situation offers a golden opportunity for India, provided we play our cards right.
Capitalizing on Opportunities: Sunanda K. Datta-RayWhat opportunities are up for grabs? The primary priority should be strengthening the economy by drastically improving cost competitiveness and significantly expediting the 'ease of doing business' agenda. India's complacent corporate sector has been slowing down innovation and improving productivity. The corporate sector needs to embrace a greater level of economic competition internally to achieve more.
Boosting India's Edu Assessment Capacity: KetanThe government could have done more to facilitate 'ease of doing business'. Let's get real; we've got plenty of bureaucratic red tape, unnecessary laws, rampant corruption, and too much 'inspector raj'. According to the last 2020 Global Ease of Doing Business, we're ranked a dismal 63 out of 190 countries. We're the world's fastest-growing economy, but that's mainly due to our massive size and the entrepreneurial drive of our people. The hard truth is, there's still much work to be done to clean up our economy. Growth rates of around six percent are impressive, but they're not enough for comfort or to lift the millions languishing below the subsistence level. India needs to grow at rates of around nine or ten percent to make a substantial impact on our economic situation.
India and the Global AI Race: Winning Strategies by Manish TewariTrump's tariffs on China have created a temporary window for Indian manufacturers to expand their presence in sectors like electronics, pharmaceuticals, and textiles. In other areas, too, the lower tariffs imposed by the US on India and exemptions granted to critical sectors offer opportunities to manipulate tariffs wisely to attract foreign investments. However, to capture these opportunities, India's domestic industry must become more competitive. The PLI schemes are a good starting point, but deeper labor law, infrastructure, and ease of doing business reforms are needed to attract global supply chains. Unfortunately, in the 2024 Global Competitiveness Index prepared by the International Institute of Management Development, we are only at the 39th position.
One of China's weaknesses was its excessive reliance on the US as an export destination. India must diversify its trade partners to avoid similar risks. While the US remains a crucial market, New Delhi must aggressively expand its trade with the EU, Africa, and Latin America. The recently concluded trade agreements with Australia and the UAE are steps in the right direction, but India should prioritize deals with the UK and EU. Building trade coalitions with like-minded countries, such as Japan, Australia, and EU members, can help India counter unilateral trade measures.
Washington's attempts to limit China's economic dominance could ultimately benefit India. The US has imposed 125% tariffs on China, and is already actively seeking alternatives to Chinese supply chains. India - with its vast workforce and democratic credentials - is a natural fit for this transition. The slogan "Atmanirbhar Bharat" has meaning only if it can be tested in challenging circumstances. We must strive to ascend the value chain, because our foreign direct investment inflows have stagnated and actually fallen from over two percent of GDP in recent years to just one percent now.
One of India's strengths is that we are part of the global economic order while also possessing a vast domestic market to protect us from external shocks. However, has Atmanirbhar Bharat worked to maximize this advantage? Doubtful, given that there are still too many bureaucratic obstacles hindering economic reforms. India requires fresh and innovative thinking, not quick-fix measures. Let's form a committee to identify roadblocks to lasting economic reforms and develop time-bound plans to address them. After all, if the Prime Minister - who enjoys a strong majority spanning two terms and a stable one currently - cannot implement reforms like those of 1991, then who else can?
- In navigating the complexities of the global trade landscape, India should leverage its strategic location and unique position as a democratically governed nation to attract multinational companies seeking alternatives to China, thereby reinforcing its financial interests in the business sector.
- Given the volatile nature of international politics and the potential crises that may arise, such as the US-China trade war, India must also focus on bolstering its domestic economy by addressing the bureaucratic obstacles hindering economic reforms, improving ease of doing business, and embracing competition to promote innovation and productivity among domestic corporations.
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