Asserting that even India is not a champion of the open economy, the best thing for India to do right now is to not get involved in the trade war between the United States and China and rather focus on becoming a part global supply chains to strengthen its position, noted economist Arvind Virmani said.
In fact, in an interaction with ET Now, he suggested that India should do open its economy and facilitate ease of imports and exports as in the market economy, reduction of the tariff is “good for all”. He also suggested that India can take the lead, join hands with international economic unions like European Union and advocate free global trade.
Earlier in the day seconding Raghuram Rajan’s comments on the trade war that India must stay away, Arvind Virmani tweeted: Don’t insert yourself into the middle of a trade war between giant economies, keep a low profile, do whatever is reasonably possible to avoid activating anti-India lobbies in US.
While some industrialists have demanded a reciprocal action against the US, many experts have advised New Delhi in acting in any manner. Former RBI governor Raghuram Rajan, while addressing Global Digital Summit on Friday, too, asked India to maintain a wait and watch policy on trade war even as he warned India that this could have ramification on global economic recovery.
It is now a generally accepted fact that even as the trade war is between the US and China, India could become a collateral damage and Indian exports may suffer due to reciprocal protectionism from different countries in the World. Moreover, anti-dumping duties imposed by the US on Indian shrimps and steel flanges are making the situation worse. India’s exports association FIEO chief Ajay Sahai also said that India has a lot of business to do with India and that it must try to solve this issue via dialogue.