(a) whether the impact of trade war between the United States and China would have a spillover effect on India; and
(b) if so, the degree of adverse impact on Indian economy in the light of such trade war?
(a) whether the impact of trade war between the United States and China would have a spillover effect on India; and
(b) if so, the degree of adverse impact on Indian economy in the light of such trade war?
THE MINISTER OF COMMERCE AND INDUSTRY
(SHRI PIYUSH GOYAL)
(a) & (b): The impact of trade war between United States and China may have a spill over effects on other countries including India. The imposition of tariffs between the US and China could provide a window of opportunity, in the short run for enhancing India’s exports to China and the US, on products in which India is relatively price competitive, and can generate exportable surpluses quickly.
The trade standoff may also affect the investment decisions of the investing companies, as the companies would try to relocate / diversify manufacturing capacities to other countries.
The exact degree of impact of US-China trade war on the Indian economy may not be discernible at this point of time.
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