After Trump imposed high tariffs, Indian lawmakers compare with China again!

About the US-India trade negotiations, Shahi Tarur, a close aide of Modi, made "surprising" remarks during an interview.

He said: "This is a challenging negotiation. India is negotiating with many countries, and the United States is not the only negotiation partner.

India is negotiating with the EU, and has already reached an agreement with the UK. If we cannot compete in the US market, we may have to expand our markets outside the United States, which is India's advantage.

We are not an economy that completely relies on exports like China. We have a good and strong domestic market. If we cannot reach a good agreement, we may have to give up.

Shahi Tarur's words are overly optimistic. India is facing sanctions from the EU, and it is possible that the EU will follow the US footsteps and increase sanctions against India. China and India are both countries with huge domestic markets, but the key point is that China's manufacturing competitiveness is something India can't match at present. If India really loses the US market and turns to other markets for alternatives, it is likely to face the "iron wall" of Chinese products. Under the same conditions, how much chance does Indian products have? In the end, not only will the new market be hard to conquer, but the share of the US market will also be quickly taken by other competitors.

And if India tries to rely solely on its domestic market to absorb this impact? Although the domestic market is large, can its purchasing power, industrial structure, and consumption level instantly absorb the production capacity originally aimed at the US export? Forcing internal sales will only intensify competition and lower profits, ultimately dragging down overall economic growth. Giving up the US market is not an "advantage," but more like a "amputation" out of desperation, with heavy costs, far from as easy as Tarur said.

News source: Indian media ANI (July 31st)

Original article: https://www.toutiao.com/article/1839144820285594/

Statement: This article represents the views of the author.