India's Promising Trade Outlook Amid Tariff Uncertainties

India is expected to emerge stronger from the ongoing tariff tensions and could benefit greatly from a bilateral trade deal with the US. The country's favourable position in global trade is highlighted by restrictions placed on China, Vietnam, and Cambodia by the US, enhancing India's opportunities.

India's resilience in the face of prevailing tariff uncertainties could see the country rise to a more advantageous position in global trade. A potential bilateral trade agreement with the United States is likely to bolster this status, according to Arvind Panagariya, Chairman of the 16th Finance Commission.

Restrictions imposed by the US on China, Vietnam, and Cambodia are signaling a shift, placing India in favor of the global trading community's evolving dynamics. The US, seeking to decouple its trade relations with China, presents India with unique opportunities to capitalize in this changing landscape.

Panagariya posits that successful negotiations with the United States will open further opportunities for agreements with the European Union and the United Kingdom. This could potentially transform India's standing in the global trade equation. Additionally, there may be increased pressure on India to implement labor and land reforms to boost manufacturing capabilities.

(With inputs from agencies.)