America-China News / Trade war between China and America, how beneficial will it be for India?

America-China News: For some time now, the interest of foreign investors (FII) in the Indian market has decreased, and their eyes have turned towards China. Due to this, the Indian stock market has also been negatively affected. While the market made a new high on September 27, since then the Indian stock market has come down by about 10%, and due to this decline, investors have lost about Rs 48 lakh crore. Now, a new report has come out, which states that the trade war between the US and China may intensify in the next term of Donald Trump, which may open a new possibility in the Indian market.

CLSA Report: Shift from China to India

Global brokerage company CLSA said in its latest report that it has reduced investment in China regarding its strategic investment and now it is taking steps towards increasing investment in India. The report says that the trade war between the US and China may increase in the next term of Donald Trump, which may affect the Chinese markets, and this is the reason why CLSA has changed its stance and reduced its investment from China.

The report also states that due to the possibility of trade war in Trump's second term, investment in the Indian market can be expected to increase. However, it is difficult to estimate the intensity of this investment growth.

Will the trade war increase in Trump's tenure?

CLSA says that America's trade relations with China may become even more tough in Trump's second term, which may affect China's growth and exports. China's export share is the highest worldwide, and it may increase due to Trump's change in trade policy. This is the reason why CLSA has decided to turn its investment towards India.

According to CLSA, now it is changing in this direction and has decided to increase investment in India. If this investment increases in the Indian market, then there are chances that the Indian stock market may see a new boom. However, it is difficult to predict how much the market will increase.

How will India benefit from the trade war?

India can get a big benefit from the escalation of the trade war between the US and China. Deterioration of trade relations with China can attract American companies to invest in India. Along with this, there may also be a possibility of India's exports increasing.

GTRI (Global Trade Research Initiative), a research organization, has said in its report that two bills introduced last month in the US Parliament's upper house, the Senate, can intensify the trade war with China, and these bills can have a far-reaching impact on the global economy.

Bills such as PNTR (Permanent and Normal Trade Relations Act) and ANTE (Non-Market Duty Evasion Elimination Act) aim to challenge China's trade practices and erect new trade barriers. The PNTR bill will take steps to end China's special trade status, while the ANTE bill will take tough action against non-market economies, such as China and Russia.

Prospects for India

The growing competition between the US and China may give India an opportunity to become an attractive destination for global investors. If Trump's tenure indeed escalates the trade war, India may become a suitable option for Indian exporters and US companies. US companies may turn to India in search of India's growing economy and business opportunities, which will be a positive sign for the Indian market.

Conclusion

The CLSA report makes it clear that a golden opportunity may come for India, especially if the trade war between the US and China intensifies. The return of foreign investors to the Indian market can be a boost for the Indian economy, which can open up new ups and investment opportunities in the market. However, it is also important to keep in mind that it is difficult to accurately predict the sustainability of this trend and the return of investment in the long term.