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.
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.
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.