How the trade war between United States and China impacts the India economy?
Ans: On-going trade war
between two economic behemoths —The USA and China–could lead to some
changing dynamics in the Indian economy
which witnessed an impressive growth of 7.5 per cent, the fastest among
all the all major economies in the world,
In the last
month, the value of the rupee nosedived to all-time low, when in some occasions
it was hovering around mid-68s against the US dollar. This happened after US
President Donald Trump’s threat of imposing a fresh round of tariffs on exports
worth 200 million dollars. This trend can be traced to weakening of the US
dollar which automatically creates a negative impact on the trade deficit of
India causing a chain of reaction of sorts.
raging global trade war, key indices in the Indian share market dropped due to
the cautious approach of the investors. The Sensex of the Bombay Stock Exchange
witnessed regular upheavals. NSE Nifty’s performance too was along the same
lines as it also saw significant drops.
As Trump imposed
duties on steel and aluminium, India now has to pay nearly 241 million dollars’
worth of tax to the USA. India, on the
other hand, has proposed imposing duties on 30 different types of goods. This
will ensure that the US has to pay about 238 million dollars to India. However,
this will make life more difficult for the end consumers as everything that
falls under the tariff scanner is expected to become more expensive.
As far as
manufacturing industry is concerned, the additional duty imposed could have a
detrimental effect, as the cost of production will go up due to the rise in the
price of raw materials. Moreover, other things which may face an increase in
price include foreign motorbikes with high engine capacity and food products
like almonds, walnuts and pulses.
according to a report published in Economic Times, the US-China trade war is
indirectly helping India boost its exports, but that may begin to hurt smaller
economies and others if China’s growth slows down due to the conflict, Beth Ann
Bovino, US chief economist for rating company Standard and Poor’s said.
But the Indian
rupee may weaken further if the US government goes ahead with more fiscal cuts
to boost its economy. It would force more funds to chase growth there, she
said. The Chinese are seen substituting their cotton imports from the US to
India and other Asian economies.
India will focus
on boosting its exports to the US and other global markets as Chinese shipments
become unattractive amid the trade war. The New Delhi is focusing on a handful
of items like automotive parts, chemicals, electrical equipment among others
after the US and China slapped reciprocated duties on each other’s goods.
judicial activism is against the separation of powers it is remedying the many
public issues which are avoided by the executive. Is it better to allow
judicial activism in India?
activism means active participation of judiciary in rule making, new
interpretation of laws and directing the other organs of democracy like
executive and legislature. Judicial Review forms a part of judicial activism
which it has empowered itself to review the laws enacted by the legislature,
strike down unconstitutional provisions.