Trade Wars: Winners and Opportunities for India

A GTRI report highlights how Mexico, Canada, and ASEAN nations benefited more than India from the US-China trade war. It suggests India strengthen its supply chains, enhance cost efficiency, and improve the business environment. With Trump's potential return, India's export strategy can capitalize on new tariffs.

A recent report by the Global Trade Research Initiative (GTRI) has pointed out how nations like Mexico, Canada, and the ASEAN bloc have reaped more benefits from the US-China trade conflict than India. According to the report, titled 'Trade Wars: Winners and Opportunities for India,' the key beneficiaries accounted for a massive 57% of the growth in US imports.

The GTRI highlights the steps India needs to take to grab larger benefits from any future trade wars, especially with the potential return to power of Donald Trump. The report suggests India should focus on strengthening local supply chains and producing critical intermediates to reduce dependence on China, thereby enhancing the competitiveness of its domestic industries.

As the global trade landscape evolves, the report emphasizes that India, which saw a USD 36.8 billion increase in exports to the US, needs to lower import tariffs and improve ease of doing business to maximize this potential new trade era driven by changes in US tariffs.

(With inputs from agencies.)