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Context
India must stay clear of the US-China trade war, focus on reviving the domestic economy
Backdrop
- US imposed tariffs on Chinese imports worth up to $60 billion after an earlier move to raise import duty on steel and aluminum products coming into the US
- China has retaliated imposing tariffs on US imports worth $3 billion, including aluminum, steel pipes, US pork besides fruit and wine fuelling fears of a trade war
How does it impact India?
The threat of a trade war comes at a time when global economy is on the recovery mode with signs that Indian exports might be benefitted with a subsequent increase
What should India do?
Indian government should focus more on reviving the economy and ensuring the completion of projects. A resurgent economy is the best insurance to counter the threat to the global economic recovery
