Ajay Srivastava, the founder of Global Trade Research Initiative (GTRI), stated that India should strategically interact with both superpowers - China and the US, and avoid aligning itself with either side in the current tariff conflict.
Srivastava has highlighted that India should adhere to the principles of global trade instead of focusing on individual interests.
A recent report from Chinese state media indicated that China plans to implement countermeasures in a ‘resolute and reciprocal manner’ against any countries perceived as accommodating the US. The report further mentioned that the Chinese government opposes any country forming agreements with the US that undermines their own national interests (China).
GTRI emphasized that India needs to pursue an autonomous path in this changing environment. This involves bolstering its internal manufacturing industry and decreasing dependence on essential imports through investments in advanced manufacturing skills.
Concurrently, India must remain dedicated to the multilateral trade system guided by the World Trade Organization (WTO) and refrain from taking steps that could violate international trade regulations.
India and the US are working on bilateral trade discussions, which are anticipated to be completed by autumn 2025. While the US has suspended reciprocal tariffs on a few nations, such as India, the tariffs on China still remain unchanged. Currently, a standard tariff of 10% will be imposed on US imports from various countries, including India.
GTRI additionally encouraged policymakers to evaluate China's response by considering the dynamics of global supply chains. The current global economy is significantly reliant on China, not only for completed products but also for intermediate goods and parts that are essential to industrial manufacturing
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