After the US-China Trade War, India too seems to be adopting a protectionist policy against China. Given the large trade deficit with China, India is moving to close its market to Chinese goods. However, Chinese experts believe that this is not a wise move, and Delhi should stay away from igniting India-China Trade War.
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Recently India’s Parliamentary Committee on Commerce highlighted the large trade deficit with China. Besides this, the committee also highlighted the concerns arising due to surplus imports from China as they hit the Make In India initiative hard.
Local industries in India have been adversely impacted making India realise that it needs to tame the influx of Chinese goods. India is now determined to take pro-active steps to pull the plug on Chinese products following the example of the US.
The US has imposed tariffs on Chinese imports worth $50 billion hence waging a trade war with China. Trump further threatened China that he would not mind increasing the tariffs on the import of all Chinese goods. This has slowed down the Chinese economy and has impacted various Chinese firms.
Now after the US, China might also feel the heat of India’s protectionism as India looks to bolster its own manufacturing sector. To achieve this, India will look to stop relying too much on goods from China hence cutting down imports or increasing duties on them.
Experts feel that given the protectionism and unilateralism by the US and India, China should work as a unit to fight protectionism. As reported by the Global Times, experts argue that the two nations should work towards enhancing their bilateral trade for there is ample room for negotiations. So, Is an India-China trade war next on cards as India looks to bat for its highly ambitious Make In India initiative?