INDIA’S STRATEGY TO MITIGATE TRADE WAR IMPACT

PRELIMS BITS 

• Strengthening Domestic Manufacturing:
  • Initiatives like the Production-Linked Incentive (PLI) Scheme and Make in India aim to enhance domestic manufacturing capabilities.
• Diversification of Trade Partners:
  • India is forging new trade agreements with countries like the UAE, Australia, and the EU.
• Reducing Dependence on China:
  • India is adopting a China+1 strategy, reducing its dependency on China by diversifying suppliers.
• Internationalization of the Rupee:
  • This involves promoting the use of the Indian Rupee in international trade, reducing exposure to foreign currency fluctuations.