China’s Loss Not India’s Gain: Axis Bank’s Neelkanth on US Tariffs
The ongoing trade tensions between the United States and China have been making headlines globally, with many experts weighing in on the impact of the tariffs on various economies. In a recent interview, Axis Bank’s Chief Economist Neelkanth Mishra expressed his views on the matter, stating that the narratives about India benefiting from US tariffs on China and other economies are erroneous. According to Mishra, any trade war can stall investments and affect global growth, making it a bad scenario for everyone, including India.
The tariffs imposed by the US on Chinese goods have been a key point of contention in the trade war between the two nations. China has retaliated by imposing tariffs on US goods, leading to a tit-for-tat situation. Many experts have argued that India could benefit from this situation, as it could lead to a shift in global supply chains away from China and towards other countries, including India.
However, Mishra disagrees with this view, stating that the tariffs are not a boon for India. “If anyone is under any illusion that these tariffs somehow help India, I think they are mistaken,” he said. According to Mishra, the tariffs are not a targeted measure to benefit India, but rather a protectionist move by the US aimed at reducing its trade deficit with China.
Mishra’s views are supported by data, which shows that India’s exports to the US have not seen a significant increase despite the tariffs on Chinese goods. In fact, India’s exports to the US have been declining in recent months, primarily due to factors such as the decline in global trade and the strengthening of the US dollar.
Moreover, Mishra pointed out that the tariffs are not a long-term solution to the trade imbalances between the US and China. “These tariffs are not a sustainable solution to the problem,” he said. “In the long run, it’s not going to solve the issue of trade imbalances, and it’s going to create new problems.”
Mishra also highlighted the potential risks of a trade war, including the impact on global growth and investments. “Any trade war can stall investments and affect global growth,” he said. “It’s not just about the US and China, it’s about the entire global economy.”
India is also likely to be affected by the trade war, as it is a significant trade partner with both the US and China. The country’s exports to the US have been growing in recent years, and any disruption to global supply chains could have a negative impact on Indian businesses.
In addition, India’s economic growth has been slowing down in recent months, and the trade war could further exacerbate the situation. The country’s GDP growth rate has been hovering around 7% in recent years, but it has been declining steadily, and the trade war could lead to further contraction.
Mishra’s views on the trade war are a stark reminder of the complex and interconnected nature of the global economy. While some experts may argue that India can benefit from the tariffs, Mishra’s analysis suggests that the situation is far more nuanced and that the tariffs are likely to have negative consequences for the entire global economy.
In conclusion, Axis Bank’s Chief Economist Neelkanth Mishra’s views on the trade war between the US and China are a sobering reminder of the potential risks and consequences of protectionist measures. While some may argue that India can benefit from the tariffs, Mishra’s analysis suggests that the situation is far more complex and that the tariffs are likely to have negative consequences for the entire global economy.
