Mounting trade tensions between India and the US have potential for long term disadvantages for India. Suggest the various issues associated with trade dispute and the way forward that India should adopt to maintain its coordial relations with USA?( 250 Words) 15 marksSubject: Economic DevelopmentTopic: Indian Economy and related issuesSub-Topic: Trade
Introduction: Mention the trade dispute ongoing between India and USA. Mention the major reasons for it.
Scenario build up: Mention the reasons for the dispute in point wise manner like market access, reciprocity in tariffs, trade deficit, predictable investment rules and data localisation. Explain its consequences for both of these countries like withdraw India’s trade benefits under the Generalised System of Preferences, impact on exports, etc. Suggest the ways that India should adopt to move forward and maintain the rift from escalating.
Conclusion: Suggest a suitable way forward.