As the US-China trade battle heats up, think tank GTRI predicts that India’s exports would rise and that US businesses will invest there.
They stated that the US Senate submitted two proposals last month that, if approved, would significantly affect the world economy and escalate the trade war.
By increasing tariffs and enacting additional trade obstacles, the “Neither Permanent Nor Normal Trade Relations Act” (PNTR Act) and the “Axing Non-Market Tariff Evasion Act” (ANTE Act) seek to challenge China’s trade practices. The Global Trade Research Initiative (GTRI) stated that the ANTE Act takes harder measures against non-market economies like China and Russia, while the PNTR Act aims to remove China’s preferential trade status gradually.
According to GTRI Founder Ajay Srivastava, India may see a rise in investment in textiles and manufacturing as US businesses search for alternatives to China. This would strengthen India’s position in global supply chains.
Given this context, he said, India need to reevaluate its invitations to Chinese businesses and investment with the intention of increasing exports.
He said that India has a chance to bolster its manufacturing industry as a result of the higher tariffs on Chinese goods. Additionally, he claimed that both proposals offer room for expansion for regional businesses.
The government was advised by the GTRI to aggressively pursue investment from foreign corporations looking for alternatives to China.
Building up domestic production capacities in a number of industries, such as textile manufacturing, will be crucial to bridging the gap created by the decline in Chinese imports into the US.
