India has entered the global trade war by joining countries retaliating against unilateral United States (US) tariff hikes. While the immediate impact of the friction is insignificant for India, it can be substantive if the US initiates specific trade actions. This possibility cannot be ruled out, given the acrimonious bilateral trade ties, the US tendency to act on trade on national security grounds and the inability of the World Trade Organization to prevent such actions. India's defensive outlook might also prevent it from capitalising on possible opportunities arising from a new trade order aiming to isolate a protectionist US.
This white paper by Dr. Amitendu Palit is from the Institute of South Asian Studies, National University of Singapore.