Trade war: India may soon be a victim of it.

President Donald Trump has cast a very scary and a very threatening spell on world economy by holding in place protectionist policy measures and has vouched for protectionism.

In the race for strengthening the world economy, in the race there are United States and China who are opposite each other to be in the war. Now there is another country which may be hit surprisingly, and which is India.

The Indian economy can be hit hard by a combination of a global tariff war with the US economy and the Federal Reserve Bank’s monetary tightening policy, according to a deep study of economists.

What does the tariff war hold for India?

The seemingly tariff war will reduce the exports and it will also lead to imported inflation kind of a situation it will tension like atmosphere.

It will also hurt the Indian purchasing power and investments and would also mean a 2.3 percent of a missed GDP growth rate also. It will go beyond 2022.

What about the other countries?

The other countries could well be caught up in the middle of somewhere. There were also various mentions about the current trade spats between the United States and China.

And there is a growing fear that India could soon fall victim to these things and can be caught up in the middle of a storm.

Which are the top export markets of India?

US

Honk Kong and

China

Are among the top export markets of India.

So, is India really insulated from a trade war?

The above statistics show from the fact that India is not really insulated from the trade war and given that it has a total share of the world exports from it.

A tightening of the US monetary policy will also prove a lot more different and it will also lead to the capital outflows.

With the election going to be held soon, there could also be the Rupee depreciating sharply and the missed capital inflows will also lead to$32 billion dollars.

 

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