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When you are up to achieving different heights in an area you start to think that everything is possible to get but in reality, it is a dangerous deal. India is no doubt a rising economy and is a major figure nowadays in the field it has started to take some big decisions.
A cold war which was going on before has now started to show itself and India’s rise of tariffs on American goods is its material form. Now obviously this is a bold step but will it be in favour of India or play a negative role to damage the economy. This is true that India sells more to America than it imports through the sea and air cargo to India.
But the thing is that it is America you are talking about and if anything strikes back it will become a danger for India and nothing will harm the superpower. America has already removed India from its preferable trade destinations due to high tariffs and it can do more to make it worse for the country.
These high rates are taken to be a symbol of reaction given to the above-mentioned step. The goods on which the raise has been imparted is worth $240 billion which is a hell of an amount. So the purpose is simple, to make it expensive for America.
The second time elected PM Modi has certainly changed the way to approach this situation. In his first tenure, he delayed to talk about these rising situation but now it seems that he has opened fire directly.
But there is also a relaxation, which is not much taxes are imposed on these imports. So there is a lighter side also to keep things in control to some extent.
It is of no doubt that India has risen from its not worthy to one of the most important business and trade destination. But the thing is that there are still many factors inside the country that can damage the economy if something big happens to the trade sector.
On the other hand, American countries also want to get a big share in Indian trade. In fact, both are playing with each other’s cards to win the battle. But despite its importance, it cannot outrun China which is becoming a threat to foreign trades inside its boundaries.
Actually, it is not. India has recorded a quick rise in the trade side but it has lessened from 2018 till now. The pace is not said to be the same, so now there is a somewhat low condition going on.
There can be many reasons for the situation but people always concentrate on the results. So is it really the right time to get into tough situations and hard choices or there should be stability to stress upon. China can pressurize America but still, India has to do a lot to reach there.
