What’s next for India?
With the US still its largest export market, India has been working to support its exporters and diversify trade to new destinations.
Experts believe there is growing focus on reframing the tariff setback as an opportunity.
Earlier this month, Prime Minister Narendra Modi announced that an economic task force will be set up to drive the next generation of reforms. It will look to modernise economic laws, reduce compliance costs, and boost India’s competitiveness and self-reliance.
This comes even as Modi continues efforts to strengthen regional relations.
He will embark on a two-nation tour of Japan and China from Friday to Monday.
“Regional alliances are clearly in focus here,” said Kishore. “But just a word of caution that all of this has also come with a rhetoric on self-reliance, and here India has to be careful that self-reliance does not slip into inefficient import substitution.
“So, definitely a lot of scope to turn this into opportunity, but much really depends on how policies are formulated and executed.”
Modi’s trip to China – for the multilateral Shanghai Cooperation Organisation summit starting Sunday – will be his first in seven years.
Asked whether rising tensions with the US could drive India and China closer, Draper said: “At the end of the day, it’s in both China and India’s interest to be seen, to be getting closer.
“But the ongoing geopolitical tensions between them, I think, will supersede any superficial closeness.”
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