Assocham India published a report saying that India is likely to be harmed by a trade war between China and the US and that the country must be proactive to ensure that India is “on the right side of the upcoming US administration; or else the impact could be on the Indian services exports to the American firms.”
Assocham’s message that cautions being dragged into a US-China trade war seems to suggest that New Delhi should lean toward Washington and be ready to reap economic gains from a growing alliance with the US. While this observation appears to be pragmatic, experts say it is also near-sighted and may risk distracting
India from a better path for economic growth. Only by integrating itself into the global supply chain can India boost exports and drive growth. To achieve that, the best way is to work with a manufacturing powerhouse, like China, and develop its manufacturing capacity to become an integral part of the Asian supply chain.
This would allow India to attract more foreign investment and open further to the outside world.