US-China trade war: After phase 1 deal, this lies ahead for India

By: |
Published: January 22, 2020 6:54:17 PM

The first phase of the trade deal between the two economic majors was signed recently, which has helped in reducing trade tensions which have been a major concern for the global economy.

Donald Trump, Boeing, US economy, GDP, Davos economic forum, SwitzerlandDonald Trump recently said at the World Economic Forum in Davos that he shares a great relationship with Chinese President Xi Jinping.

With the US and China agreeing on phase 1 deal, trade tensions seemed to have reduced for some time. However, the indication from the US President Donald Trump that the signing of the first phase should not be an indication that the US would go easy in round 2 has further extended the uncertainty. In such a scenario, it’s to be seen if India would be able to further take advantage of the same. India so far has managed to benefit from some of the large manufacturers leaving China, Kotak Annual Outlook 2020 said. “(India) appears well-positioned to take advantage of any prolonged uncertainty arising, and of the developing relations between India and China,” the report added. India in case benefits, it’s expected to be a positive for the Indian rupee on account of abundant labour and skilled demographic, the Kotak report also said.

The first phase of the trade deal between the two economic majors was signed recently, which has helped in reducing trade tensions which have been a major concern for the global economy. Donald Trump recently said at the World Economic Forum in Davos that he shares a great relationship with Chinese President Xi Jinping. “My relationship with Xi is extraordinary. He’s for China, I’m for the US but other than that, we love each other,” news agency PTI reported the US President as saying.

Also read: Budget 2020: Amid slowdown, govt to unveil plan of action on economy in budget; check details

The second phase of negotiations for the US-China trade deal would begin soon and the administration is focussing on trade, which was neglected by his predecessors, he noted.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Next Stories
1Goa CM Pramod Sawant moots plan for private sector hiring via govt body, faces flak
2US President Donald Trump touts ‘great American comeback’ at Davos; says 2nd phase of US-China trade deal soon
3Mini-economic crises looming: India’s stagflation spreads to other emerging markets