India stands to gain immensely from the growing trade tensions between the U.S. and China. As supply chains across the world reorganize, India is becoming an attractive alternative for multinational companies looking to diversify their dependence on China.
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Export Opportunities: India has the potential to increase its exports by $10–15 billion every year by meeting supply gaps in sectors such as textiles, pharmaceuticals and IT services. The US may turn to India for these items as it reduces dependency on Chinese imports.
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Manufacturing Hub: "Make in India" and the Production-Linked Incentive (PLI) schemes introduced by India are drawing foreign producers, especially of electronics and drugs. This aligns with global companies' adoption of the "China+1" strategy.
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Economic Resilience: In spite of adversity, the robust economic base of India founded on domestic consumption and services is more resilient than export-based economies such as that of China.
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Global Market Dynamics: The U.S.-China trade war has disturbed global markets, but India's relative stability presents a good atmosphere for foreign investment and trade partnerships.
As the trade conflict increases, India is poised to capitalize on these opportunities and consolidate its position in the global economy.
Source: FirstPost, India Today, Local and Global Economy.