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US-China Trade Conflict: A Strategic Opportunity for India India’s export and economic policymakers are watching closely as tensions escalate between the United States and China. With Washington imposing a steep 125% tariff on Chinese imports in multiple sectors, including manufacturing and consumer goods, Indian exporters see an unprecedented window of opportunity. Ajai Sahai, Director General and CEO of the Federation of Indian Export Organisations (FIEO), highlighted that such high tariffs could force Chinese firms to vacate critical market sectors in the U.S., paving the way for Indian businesses to fill the void—particularly in sectors like textiles and footwear , where China previously held over 25% of the U.S. market share. Indian Manufacturing Gears Up for Relocation Boom According to Sahai, multinational firms that once relied on China as their primary manufacturing base for U.S.-bound exports are likely to look toward India as a viable alternative . With a large domest...

Monetary Policy Update: Repo Rate Reduced to 6% In a proactive move aimed at supporting domestic economic recovery amidst rising global uncertainties, the Reserve Bank of India (RBI) on Wednesday announced a 25-basis-point cut in the repo rate , reducing it from 6.25% to 6% . This decision was made during the three-day Monetary Policy Committee (MPC) meeting held on April 7–9 , and it marks the second consecutive repo rate cut, following a similar reduction in February 2025. RBI Governor Sanjay Malhotra announced that the decision was taken unanimously after a detailed macroeconomic review. The aim is to stimulate growth while keeping inflation under control. Global Outlook Influencing Policy Decisions Governor Malhotra noted that global economic conditions are shifting rapidly, largely due to recent tariff-related developments and trade tensions. These have led to increasing uncertainty in international markets, causing volatility in commodity prices, and posing challenges ...

Understanding Tariffs: A Key Element in Global Trade Tariffs are taxes imposed on imported goods and services by a country’s government. These duties are levied to regulate trade, protect domestic industries, and generate revenue. Tariffs can be classified into two main types: Ad Valorem Tariffs : Levied as a percentage of the value of the goods. Specific Tariffs : Charged as a fixed amount per unit of the imported product. Countries impose tariffs for various reasons, including safeguarding local businesses, reducing dependency on foreign goods, and addressing trade imbalances. However, excessive tariffs can disrupt international trade, leading to economic slowdowns and strained diplomatic relations. Why is the U.S. Increasing Tariffs on Imports? The U.S. has adopted a more protectionist trade policy in recent years, implementing tariffs on imports from various countries, including India. The primary reasons behind these tariffs include: Reducing Trade Deficits : The U.S. ...