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3) Intensification of trade war between US and China offers many benefits to countries like India but it also poses certain serious threats to our economy. Analyse.

Topic: Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora

3) Intensification of trade war between US and China offers many benefits to countries like India but it also poses certain serious threats to our economy. Analyse. (250 Words)

The Indian Express

Why this question

In the recent trade war between China and US, US has imposed higher tariffs on several Chinese products and China has reciprocated the same by imposing higher tariffs on some US products. Escalation of this trade war would have huge implications not only for China and US but also for other economies including India. The question is related to the GS-3 syllabus under the following heading- India and its neighborhood- relations. Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests, Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.

Key demand of the question

The question demands us to analyse the US-China trade war and thereof conclude its positive aspects as well as its fallouts, with respect to Indian economy.

Directive word

Analyse- the question wants us to dig deep into the issue and identify various benefits the ongoing US-China trade war can bring to India. It also wants us to find out the negative effects of such war on Indian economy.

Structure of the answer

Introduction- in the introduction you can mention the effect of the ongoing trade war on the stock exchanges. Or you can mention the implausibility of a full-scale trade war between the two countries given the geo-political realities in today’s world.

Body of the answer- divide the body of the answer into two parts. In one part, discuss the positive effects of US-China trade war, on Indian economy. In another part, discuss the adverse effects it could have on Indian economy.

Conclusion – in the conclusion you can mention in 1-2 lines, the importance of trade in promoting peace and prosperity among participating countries. You can also conclude your answer by providing suggestions in order to forestall any negative fallouts of the trade war on Indian economy.