cover image: India’s Economic Realignment

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India’s Economic Realignment

3 Oct 2024

Introduction The trade war between the US and China, initiated during the Trump administration, reshaped global trade dynamics. As a result, imports from China were offset by increased imports from other countries. Additionally, the tariffs imposed by the US incentivised firms operating manufacturing units to relocate back to the US or to other geographies with more favourable trade conditions. [1] This shift was dramatically accelerated by the COVID-19 pandemic, which exposed and intensified vulnerabilities within these concentrated supply chains. The pandemic’s disruption, marked by severe lockdowns and restrictions in China due to the zero-COVID policy, further highlighted the risks posed by an overreliance on a single geographical area for manufacturing.
market access foreign direct investment (fdi) indian economy regional trade agreements (rtas) supply chain disruption atmanirbhar bharat geopolitical tensions manufacturing relocation us-china trade war china+1 strategy production-linked incentive (pli) friendshoring

Authors

Bibek Debroy, Aditya Sinha

Attribution
Bibek Debroy and Aditya Sinha, “India’s Economic Realignment,” ORF Issue Brief No. 735 , October 2024, Observer Research Foundation.
Pages
11
Published in
India

Table of Contents