Piyush Goyal’s visit to the United States has caused speculation on potential trade negotiations, but Aiyar thinks the scope of such discussion is still limited.
“It is impossible to think that you can do free trade transactions,” he said. He inevitably needs such a contract that “labor standards, environmental standards, and various other problems are needed.
Aiyar suggested that the tariff adjustment of both sides will be a trivial problem because India can absorb great shocks.
But he warned that greater threats are not direct tariffs, but extensive economic uncertainty caused by the World Trade War. According to him, due to the slowdown in GDP and reducing trade volume, the ripple effect of worsening global trade relations throughout the economy, including India, will be felt.
“We have already seen great uncertainty in all business markets, but no one knows how to plan in advance,” Aiyar pointed out that the slowdown in global trade and global investment can draw the economy of India. He pointed out that some analysts predict the potential recession, while he was paying attention to the decisive prediction. But Aiyar was clearly clear that the situation would fall through the rapid or rapid market correction. As business and investors increase volatility, AIYAR’s evaluation emphasizes the need for India to carefully explore head winds around the world.
In conclusion, India may not be directly targeted for US tariffs, but the economic trajectory is related to the extensive change of global trade and investment sentiment.
Also read: India is called the best market, but reduces exposure. What does Christopher Wood see?
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