Protectionism is the economic policy of restricting imports from other countries through methods such as tariffs on imported goods, import quotas, and a variety of other government regulations. Protectionist policies help immune the producers, businesses, and workers of the import-competing sector in the country from foreign competitors.
Impact on India
- India has gained window of opportunity to boost export of agricultural items to China.
- Diminished US-CHIna trade relation could have positive results from a trade prespective.
- It will provide India a platform to engage with countries, US and China and increase its presence in the region.
- It might lead to downslide of steel and aluminium industry owing to influx of steel and aluminium due to excess production.
- Higher tariffs would have major implications on India’s Banking system which is already crippled by Bad loans and recent scams.
- India will be impacted by the higher tariffs because India’s export of steel and aluminium products to US stood at about US $1.5 billion every year.
- H1 B issue is going to hurt the Indian employed in the US IT companies. The hiring will become costly.