The impact of the global tariff war seems to be increasing. Earlier it was believed that this would increase the global trade war, which would affect different countries in different ways. Experts believed that it would have less impact on India than other countries, because the Indian economy is dependent on domestic consumption, not on exports. But now this tariff war seems to be harming America the most. Now there is talk of the American economy going into recession. On March 10, there was a big decline in the American stock market. All three major indices of the American market fell significantly due to selling pressure. Its effect was seen on the Asian markets on March 11. The indices of major Asian markets were seen in the red mark.
India remains Trump's target
US President Donald Trump has targeted India several times in this tariff war. Recently, he also mentioned India in his address to the US Congress. Trump calls India the 'tariff king'. This indicates that India will remain on Trump's target. Especially, Reciprocal Tariff is going to start from the beginning of April. Its effect will start showing after a few months. How much impact it will have on India will be known later. But, it is true that India imposes very high tariff on American products. Secondly, the trade between America and India is tilted in India's favor.
India's tariff is the highest in the world
India's average weighted tariff is 11.5 percent. This is one of the highest tariffs in the world. Sanford Bernstein has mentioned this in its report. It is a global investment research and broking firm. The firm has mentioned in its report that India's tariff appears to be higher when compared to the tariffs of emerging countries. Only some African countries have higher tariffs than this. On the other hand, Iran also imposes high tariffs, due to the sanctions imposed on it. In such a situation, it is natural for India to be Trump's target. However, India can deal with the matter by changing its policy according to the changing situations.
India-US trade scales in India's favour
Currently, the balance in trade between America and India is tilted towards India. The main reason for this is that after the Indian economy came out of restrictions in 1990, trade between the two countries has grown rapidly. Sanford Bernstein has said in its report that in the last 30 years, American exports have increased 25 times, but its imports have increased 38 times. America's trade deficit with India has increased by almost 90 percent since the global financial crisis. This has become a thorn in the eyes of the Trump government of America. Because of this, Trump is seen mentioning India in most of his speeches.
If the US economy goes into recession, there will be serious consequences
If the US economy goes into recession due to this tariff war, it can have serious consequences. This will not only hurt America but will also affect many big countries including India. It will have the biggest impact on the Indian IT and pharma industry. A large part of the revenue of Indian IT companies comes from America and Europe. The same is the case with pharma. Many big Indian pharma companies have a good presence in the American market. The business of these companies can be affected a lot. This will have a bad impact on India's IT services and pharma exports.
