- According to a study by the Commerce Ministry,the ongoing trade war between the US & China offers an opportunity to India for boosting exports of as many as 350 products.
- Both the US and China are imposing heavy import duties on each other’s products which has triggered a trade war.
- Trade war is a situation where countries restrict each other’s trade by imposing tariffs or quotas on imports.
- According to the study,as much 151 domestic products including diesel, X-ray tubes and certain chemicals have an outright advantage to displace the US exports to China.
- Similarly,203 Indian goods like rubber and graphite electrodes have the advantage to displace Chinese exports to the US.
- The study also says that ongoing trade war may bring about a shift in the global trading patterns due to spillover effects and displacement of the bilaterally traded communities to other countries.
- Further,increasing exports would help India narrow the widening trade deficit with China,which stood at USD 50.12 billion during April-February 2018-19.
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