{"id":50516,"date":"2019-07-24T16:40:39","date_gmt":"2019-07-24T11:10:39","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?page_id=50516"},"modified":"2019-07-24T16:40:47","modified_gmt":"2019-07-24T11:10:47","slug":"answered-discuss-the-impact-of-us-china-rivalry-on-india-how-india-should-approach-the-two-countries","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answered-discuss-the-impact-of-us-china-rivalry-on-india-how-india-should-approach-the-two-countries\/","title":{"rendered":"[Answered] Discuss the impact of US-China rivalry on India. How India should approach the two countries?"},"content":{"rendered":"\n
Demand of the question<\/strong>
Introduction.<\/strong> Contextual Introduction.
Body. <\/strong>Impact of China-US rivalry on India. How India should approach the two countries.
Conclusion. <\/strong>Way forward. <\/td><\/tr><\/tbody><\/table>\n\n\n\n

World order is posed to change with emerging economies like China and India. The rivalry between the global power United States and rising China is increasing and is likely to deepen. It has intensified in past two years covering trade, technology, naval activities in the South China Sea, and diplomacy. This has enormous strategic implications for all including India.<\/p>\n\n\n\n

How US-China rivalry will impact India?<\/strong><\/p>\n\n\n\n

  1. Relocation of Companies:<\/strong>US tariffs are\nlikely to induce foreign-invested companies to relocate from China. Vast\nmajority of China\u2019s exports are still accounted for by foreign-invested\ncompanies. This may lead to companies moving to India. Recent Make in India\ninitiative will boost this.<\/li>
  2. Reduced Capital flows: <\/strong>Due to China\nUS rivalry, economies will go for Protectionist measures that will impact\noverall capital flows.<\/li>
  3. Opportunity for India: <\/strong>US-China\nrivalry offer an opportunity for India. India can become more competitive in\nsegments such as textile, garments and gems and jewellery since India already\nhas an edge.<\/li>
  4. Weakening of rupee:<\/strong>The rupee will be weaken\nmore due to decreased capital flows. This will make imports costly but would\nhelp Indian exports which will become cheaper.<\/li>
  5. Economic growth: <\/strong>Current global\neconomic order will be dismantled. Thus could impact India\u2019s exports and\nimports impacting its economic growth.<\/li>
  6. Inflation: <\/strong>This would reduce supply\nof finished goods and raw material which will increase the general price for\nthe consumer. This would lead to inflation. Moreover, the burden of increased\ntax from the duties will also be borne by the final user.<\/li>
  7. Indian stock markets:<\/strong> Indian share market will\ngo down as seen recently through drop in stock markets, due to the cautious\napproach of the investors. Also flow of foreign investment may be reduced.<\/li><\/ol>\n\n\n\n

    How India should approach US and China?<\/strong><\/p>\n\n\n\n

    Under present uncertain circumstances, there is a need for different\nplans suitable to different economic environments. <\/p>\n\n\n\n

    1. India should develop a balanced foreign policy outlook for both the\nnations focussing on its economic growth and development.<\/li>
    2. India should push US on visa reforms and on increasing foreign\ninvestment in India. <\/li>
    3. Strategic defence deals at lower price should be pushed using India\u2019s\nincreased strategic significance in the region.<\/li>
    4. India should exploit this opportunity to emerge as new manufacturing hub\nby pushing US companies through better and easy regulations supported by labour\nreforms.<\/li>
    5. India should focus on the US market for items in the categories of\nmachinery, electrical equipment, vehicles and transport parts, chemicals,\nplastics and rubber products. The supply chains in China for all these products\nare likely to shift to other economies. <\/li>
    6. India should correct its negative balance of trade with China through\nincreased exports of pharmaceuticals and agricultural products to China, as the\nsituation presents right time for India to further its cause.<\/li>
    7. India can focus on numerous goods for expanding its exports to the US\nand China markets following the hike in duties by both countries on imports\nfrom each other.<\/li>
    8. Foreign direct investments from the US and China should be encouraged by\nboosting confidence of firms in India’s business climate. In the domestic\nindustry, it is important for India to enhance productivity while adding\ntechnology to its domestic production in the identified products.<\/li><\/ol>\n\n\n\n

      India is a major emerging power in the world. With present US-China rivalry it should not miss an opportunity to further its Make in India initiative and emerge as an export hub. What is needed is proper policy push and reforms in indian market. <\/p>\n","protected":false},"excerpt":{"rendered":"

      Demand of the question Introduction. Contextual Introduction. Body. Impact of China-US rivalry on India. How India should approach the two countries. Conclusion. Way forward. World order is posed to change with emerging economies like China and India. The rivalry between the global power United States and rising China is increasing and is likely to deepen.… Continue reading [Answered] Discuss the impact of US-China rivalry on India. How India should approach the two countries?<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":49132,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-50516","page","type-page","status-publish","has-post-thumbnail","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/50516","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=50516"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/50516\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/49132"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=50516"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}