India can't flex much: Assocham
However, the WTO route could be time consuming. So, the best course would be to stay bilaterally engaged, the industry body said.
New Delhi: In a global trade war, India does not have much flexing power despite high imports, Assocham said on Sunday.
“So, the best course would be to keep engaged with the major trading partners, without aligning ourselves too much into a single bloc. Wherever, our exports are affected, we must engage bilaterally and use the channel of the WTO in a rule-based manner,” the body said.
However, the WTO route could be time consuming. So, the best course would be to stay bilaterally engaged, the industry body said.
“India may be running an annual trade deficit of about $150 billion, but a much higher level of imports than exports would not provide the country handle to retaliate, should the world witnesses an escalation in trade war, since most of the imports are unavoidable,” it said.
“Though, we may end up the current fiscal with a hefty import bill of $450 billion against exports of about $300 billion, almost one-fourth of this would be only on account of crude and other related items. Then, there are essential imports of plastics and fertiliser for which the country does not have an immediate domestic capacity,” the body said. US President’s hint at items could be brought under higher tariff has sparked fears.