The renewed hopes of resumption of trade talks between the US and China is music to ears of India. Washington has promised not to go ahead with any new tariff on exports that it receives from China, and this goes down remarkably well in the global trading community, boosting the financial markets, more so the Indian trading community.
An agreement in this regard was inked between China and the USA at the G20 Summit in Osaka. The agreement has brought in a truce, though temporary, amidst a series of trade hostilities between the two greatest economies of the world.
The escalation of trading hostilities between Beijing and Washington took its toll on the global market sentiments and it was perceived as a reason enough behind a slump in global trade and economic growth.
Prof. Biswajit Dhar, associated with the Jawaharlal Nehru University of New Delhi sees two aspects of this new deal. He is of the opinion that had the trade war continued for some more time that could have benefited India, due to deflection of some of the trade as a result of the hostilities.
Manab Mazumdar, the Secretary-General of the FICCI Industry Lobby Group opined that though it is great to know about the agreement, this should be followed up by some real, more concrete steps, which will ensure that the hostilities do not resume in the next few months. A long-standing deal will help to bring back a sense of positivity in the field of investment and trade.
Since India has a number of economic red lines to clear with the USA and since President Trump has promised to work in close coordination with India on the economic and strategic front, India has a lot to gain from it and the end of the trade war between China and USA will make things easier for India.