US President Donald Trump’s escalating trade war could create market access opportunities for India as the country begins negotiating a bilateral trade agreement with the US. Senior Research Fellow Amitendu Palit suggests that India can leverage the situation to secure favorable terms for its exports.
As the US imposes steep tariffs on agricultural imports, India may benefit from this by securing concessions under a free trade agreement. However, experts caution that the long-term impact of the tariff war remains uncertain, and global supply chain disruptions could introduce unforeseen challenges.
Jayant Dasgupta, former Indian Ambassador to the World Trade Organisation, believes that the US-China trade tensions have created an opportunity for India to negotiate a bilateral trade agreement with the US. He notes that existing trade arrangements will be disrupted, creating a whole new range of opportunities for India.
However, there are challenges ahead. The escalating tariffs could increase embedded costs for Indian producers, leading to attempts to divert production or increase production to bypass tariffs. Additionally, reciprocal tariffs may not be imposed one-for-one, with other factors influencing the tariffs.
Despite these uncertainties, India holds an interesting position in the current trade landscape. With the Trump administration’s interest in negotiating a bilateral trade agreement, it is now up to India to seize this opportunity and secure a balanced outcome.
Source: https://www.cnbctv18.com/world/trump-tariff-war-india-exports-trade-deal-19568434.htm