India must take heedânot to mimic Chinaâs model, but to recognize the scale and seriousness with which Beijing is re-setting its industrial ambitions. While much attention has focused on traditional sectors, the scope of Chinaâs strategic planning stretches far beyond. Also Read: How a manufacturing boom could help India close the gender gap Programmes such…
Negotiations will now proceed sector-by-sector, focusing on market access, tariff barriers and supply chain integration. Yet, the ‘Liberation Day’ tariffs of 27% make it clear that the US is setting the terms, using protectionist levers to shape the deal in its favour for its economic nationalism. Also Read: Trade war: Trumpâs shock-and-awe tariffs only have…
It is estimated that a car has some 30,000 parts (counting everything from its engine block to nuts and bolts). The firm that provides a carâs marque (like Dodge or Toyota) manufactures only a fraction of these parts in plants spread around the world. Several intermediate parts like tires, windshields, seats and mirrors, plus hundreds…
Never mind that applying selective tariffs violates the Most Favoured Nation (MFN) rules of the World Trade Organization (WTO). If someone raises an objection, WTOâs dispute resolution mechanism is expected to deal with it. But that mechanism is broken partly because the US has blocked appointments to its appellate body. If pushed further, it is…
Being ânot Chinaâ may have been the easy part. A big manufacturing pitch in several Asian economies was that they enjoyed cordial relations with Beijing and solid historical ties to the US. Leaders didnât mind taking some rhetorical shots at America if it was convenient for domestic politics, but showed no desire to choose between…
Further, there is the possibility of even more drastic measures like âreciprocal tariffs” (with the possible inclusion of foreign value added taxes) and duties on US imports of critical minerals, apart from universal tariffs on all imports. Also Read: Think win-win: India should try some mineral diplomacy in its relations with the US We are…
The governmentâs ambition is to reach FDI worth $100 billion every year. This will still represent less than 3% of gross domestic product (GDP) and not even one-tenth of the industrial and economic investment that is needed to take GDP growth to a higher orbit. A bulk of the investment will continue to be funded…
