IASbaba's Flagship Course: Integrated Learning Programme (ILP) - 2024 Read Details
TOPIC: General Studies 2:
- Effect of policies and politics of developed and developing countries on India’s interests
In News: China has announced that they will open the country’s economy further and lower import tariffs on products including cars – struck a conciliatory tone on the rising trade tensions between China and the United States. China would also be raising the foreign ownership limit in the automobile sector and push previously announced measures to open the financial sector. Xi’s comments sent stock markets and the U.S. dollar higher on hopes of a compromise that could avert a trade war.
Background: This comes amid rising trade tensions between China and United States following a week of escalating tariff threats, popped by US frustration with China's trade and intellectual property policies.
Why:
Impact on India:
Conclusion
We have to have some incremental approach in our production where we need to increase our export basket. We must look at trade in a much more coherent fashion.
If people mentioned pharmaceuticals, practically all the precursor materials for Indian pharmaceuticals come from China. So the active ingredients in the antibiotics, the chemicals, they all come from China and in fact we are the gainers because we are getting the source material from manufacturing the high-value products and exporting them to the United States elsewhere.
We should look at this as an opportunity rather than as a threat.