Talk about the ramifications for trade benefits if the United States removes India from its list of nations designated as “developing nations.”(Answer in 150 words)
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Answer: From the very beginning, India adopted a policy of friendship towards the Chinese republic. It not only gave diplomatic recognition to the new People’s Republic of China but also pressed for its representation in the UN Security Council. So, India never suspected that China would ever launch an attack, but it did which is attributed to certain fundamental factors such as:
The Sino-Indian war is often cited as a watershed moment in Indian foreign policy, after which Nehruvian idealism began to give way to the pragmatic impulses of subsequent administrations. The significance of the 1962 war for India can be understood in following terms:
The war created such a rift between Sino-India relations that even after the lapse of six decades, the border issues between the two nations have never been negotiated considerably. The unresolved issues led to the recent standoffs in Doklam (2017) and the Galwan Valley (2020-21). China has also been found supporting the Maoists and the Northeast insurgents in India and creating a ‘String of Pearls’ in the Indian Ocean Region (IOR) across Gwadar, Hambantota, Chittagong and Myanmar port to encircle India. Taking lessons from the 1962 war, India must develop a huge military might along with making strategic partners in the region and beyond.
The USA’s removal of India from its list of “developing nations” for trade benefits has significant implications:
1. Reduced trade advantages: India will lose preferential treatment in certain trade agreements, potentially making its exports less competitive in the US market.
2. Economic impact: Sectors like textiles, jewelry, and engineering goods may face challenges, affecting jobs and export revenues.
3. Diplomatic relations: This move could strain US-India relations, especially if seen as unfair treatment by Indian policymakers.
4. WTO considerations: It may affect India’s stance in WTO negotiations, where it has traditionally aligned with developing nations.
5. Domestic reforms: This could push India to accelerate economic reforms and improve competitiveness to offset lost benefits.
6. Foreign investment: It might signal India’s economic progress to global investors, potentially attracting more foreign direct investment.
7. Self-reliance focus: This change could reinforce India’s push for self-reliance (Atmanirbhar Bharat) in various sectors.
8. Global perception: It may enhance India’s image as an emerging economic power, but also increase expectations for its global contributions.