Trade War Impact on Indian Youth – There are no winners in a trade war, as too much of protectionism ultimately restricts the global growth of the world economy. Being a part of this world and one amongst the fastest developing nation, India cannot spare itself from being affected by the ongoing trade war between USA and China.
Both the super-powers are on the verge of breaking the global current economic order brick by brick and dismantle the whole framework.
This war would have a drastic effect on the existing geopolitical scenario and chances of getting worsen is at the top.
Trade War Impact on Indian Youth
Existing free trade and free markets have lifted many people from poverty and gave them a source of income, but the present scenario may hit the income source of the poor, again pushing them towards a crisis period. The free trade and free market improve the global economic wellbeing. If one country produces goods and services in which it has efficiency and exchange it with the goods the other country is best at, then there is a win-win situation.
Though it is said that, India would not be affected much by this trade war, but the chances getting the feel of the soaring heat remains. Whenever there is a war like situation, the generation which is most affected is the youth of a nation. As the burden of the development of the country depends on their shoulders so the victory or loss of the trade war could be estimated by its effect on the Indian youth. Here we have a short-list of Trade War Impact on Indian Youth :
Trade War Impact on Indian Youth –
- Of the total exports India’s total export to USA is nearly 15%. In 2017-18 India exported nearly US 48 billion-dollar goods and services to the USA, on the other hand it has imported US 26.6 billion dollars in return. But now because of the restrictions US has started imposing, the value of rupee may decline further as a result the supply of foreign exchange would get adversely affected. All these will affect the income expenditure ratio of the Indian youth, who directly comes within this rudder.
- Our country has been fulfilling the demand of foreign exchanges with exports of goods and services, remittances coming from NRIs and Foreign Direct Investment and was spared from the devaluation of Indian rupee. Because of the trade war heat initiated by USA, the supply of foreign exchange will be disturbed and will cause payment problems of the young generation who are involved with the business relation between the two nations, resulting in depreciation of rupee.
- US is imposing restrictions on immigration of Indian people by bringing changes in the visa policies. These rule changes have a direct impact on the millennials working in US. It will not only affect the youth serving in software industry but will also affect the remittances coming from NRIs to Indian economy.
- The American imports mostly deals with latest technology trade in form of nuclear reactors, boilers, and aircraft. Reduction and restrictions may go against all the efforts of development. Any heavy tariff on these products can hit the key sectors of India, and it doesn’t has the strength to absorb this heavy expenditure compared to the developed US economy.
- Consumer products which are exported to USA are beneficial for the American consumers. The BPO and software industries set in India reduces the cost of American companies. With the trade war going simultaneously, the employment graph may get drastically affected.
- The escalating trade war can affect the youths who are working in the pharmaceutical, textile, fishing, mineral fuels and Iron & steel industries as they are manpower sensitive industries. When unemployment is looming like filthy air over the country’s economy the trade war will affect the growth momentum of Indian youth.
With the present trade war between China and USA, two present superpowers of the world, many nations may earn brownie points by extending their supports for replacing the goods and services with their products with the ones participating in the war, but the topsy-turvy situation will surely effect the world economy.
There is a positive note in this ongoing war, India may get the chance to start learning self-reliance, as a result they can increase the production at home and revive the domestic industries. Taking the cue from USA, India can endeavor to restart most of its fading industries which includes telecom, electronics, chemicals, and other products which has slowed down because of huge inflow of Chinese imports in the name of ‘free trade’. Creating new employment sectors for the youth of the country, engaging their potential for a better economy without falling into the vicious cycle is the best thing India can do now!
Trade War Impact on Indian Youth – It’s high time to change the existing notion of depending on foreign powers for our own development. Self-reliance can only get us through this tempest.