Seizing opportunities

There are openings on agri with US and pharma with China

- N CHANDRA MOHAN

THERE IS NO doubt that India must engage more closely with both the world’s leading economic powers; notably the US and China that account for a fifth of its global trade.

Escalating tensions between the two nations who are competing for hegemony has threatened to fragment global trade and investment flows broadly into US-centric and Sino-centric blocs. Although there is a fragile trade truce between them, India must be autonomous in dealing with both these powers and seize the emerging opportunities. The challenges are similar as both use coercive economic measures to impose their will on relatively weaker economies. US President Donald Trump has slapped additional sanctions of 25% on India—besides the 25% reciprocal tariffs on goods—for importing Russian oil and has signalled that a bilateral trade deal is imminent. China has blocked shipments of rare earths, fertilisers, and tunnel boring equipment to India although some of these restrictions are easing as relations are normalising.