US-China trade deal to uplift world economy, India should cash in on opportunity

As US and China put an end to trade hostility, prospects brighten for global economy. However, there lies a window of opportunity for India and it must seize this moment.

Written by January 17, 2020 20:55

After the long-drawn battle over trade tariffs, US and China, world’s two largest economies signed a preliminary deal to end two years of bitterness and friction.

trade war

Despite the formal pact in place, tension is likely to persist between the two nations as they are yet to take back escalated trade tariffs. Another round of consultation will be more aggressive and difficult as the two nations will mull discounting each other to greater extent.

Overall, this comes as a good start of the year as friction between two economies impacted the whole world. European Union’s trade dispute with US is another sticking issue which needs to be straightened out, especially in the backdrop of Britain looking to exit EU.

Window of opportunity for India

The global slowdown didn’t spare the most powerful economies including China. It recorded its slowest growth in last 3 decades, on back of cooling domestic demand and the fall-out of trade tensions with US.

US-China trade deal -

Now, as the two nations put an end to trade hostilities, it is likely to spawn a business friendly environment and push investors to park their money in promising ventures.

India, too, will benefit from improved business environment as rise in exports will propel growth.

Though, many believe that India may not get directly impacted as it could hardly drew any benefit in last two years of tensions between 2 trading giants. India stands to gain from the development, only when the hard-negotiated pact is implemented in spirt by both the nations.

Time to pull global turnaround in favour

Many still feel that India lacks the potential, infrastructure and necessary competitiveness to take advantage of global turnaround. In last two year, when two nations were imposing penalties on each other, it was Vietnam which benefitted from it.


Therefore, the best bet for India would be locate the window of opportunity and harness it to full extent. Forthcoming Budget is an excellent opportunity to make the most of this ‘window of opportunity’.