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Trade

The document discusses the impact of Covid-19 on international trade, highlighting the challenges and opportunities for India, particularly through the 'China Plus One' strategy. While India has the potential to benefit from companies diversifying away from China, it faces significant obstacles such as poor infrastructure, complex regulations, and high tariffs. To capitalize on these opportunities, India must improve its trade environment and infrastructure to attract foreign investment and enhance its position in global trade.

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Divyanshu Garg
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7 views2 pages

Trade

The document discusses the impact of Covid-19 on international trade, highlighting the challenges and opportunities for India, particularly through the 'China Plus One' strategy. While India has the potential to benefit from companies diversifying away from China, it faces significant obstacles such as poor infrastructure, complex regulations, and high tariffs. To capitalize on these opportunities, India must improve its trade environment and infrastructure to attract foreign investment and enhance its position in global trade.

Uploaded by

Divyanshu Garg
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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21BCE5309

Divyanshu

International Trade in Post-Covid World: Advantages and Challenges for India

Introduction

After Covid-19, the world trade changde a lot. Everything got messed up with supply chains, and
countries started thinking different about trade. India got a big chance to grow because of this,
specially with something called “China Plus One” strategy. But, there’s also problems like bad roads,
complicated rules, and new tariffs making things hard. This essay gonna talk about how trade
changed after Covid, what’s this China Plus One thing, and what good and bad stuff India face in
trade and geting money from other countries (FDI).

Main Text

How Trade Changed After Covid

When Covid hit, trade went down a lot because of lockdowns and no one could move stuff. I read in
a PDF that global trade dropped in 2020, but not as bad as 2009 crisis. After that, trade came back,
but not same for everyone. India did okay because we got big market here, and we don’t depend too
much on world trade. But now, in 2025, there’s big problems with tariffs. Like, America put 125% tax
on Chinese stuff and 25% on Canada and Mexico. China also hit back with 84% tax on American
goods. This make supply chains shaky. India got a huge trade gap with China, like $355 billion,
because we buy so much from them but don’t sell much back. Stuff like this show trade can get hurt
easy by politics and new rules.

What’s China Plus One and What It Mean for India

China Plus One is when companies don’t want to make everything in China anymore. They scared of
trade wars and Covid problems, so they look for other places. India can be that place because we got
lots of people, big market, and government trying to make things here with “Make in India.” I saw in
a article from The Hindu that if India let Chinese companies invest here, we can make stuff and sell to
other countries, not just buy from China. This could help our $83 billion trade problem with them.
Like, companies like Apple already moving some work to places like Vietnam, and India can get some
of that too, specially in phones and computers. Also, our IT and service business can grow because
world spending on tech may hit $5.8 trillion soon.

But, it’s not easy. India don’t get much money from China, only $2.5 billion since 2000, and China is
like 22nd in our FDI list. We got bad roads, power cuts, and too many rules that scare companies.
Countries like Vietnam doing better because they got deals with Samsung and Intel. Even some
Chinese companies like SAIC left India, but Shein coming back with Reliance is good sign. India need
to fix these things to get more from China Plus One.

Good Stuff and Problems for India

India got a lot going for it. Our economy could grow 6.6% this year, we got young people who can
work, and we close to markets in Middle East and South Asia. Deals like Australia-India trade
agreement and Indo-Pacific thing help us join big supply chains in stuff like solar panels and chips.
But, our roads and ports not good, and rules change too much, so companies don’t trust us. Also, our
taxes and tariffs too high, which make things costly. If India want to win with China Plus One, we
gotta make things easier and build better stuff like roads and power plants.

Conclusion

After Covid, trade got tricky with tariffs and politics making it hard. China Plus One is big chance for
India to get more factories and sell more stuff, specially in tech and services. We got big market and
young workers, but bad roads, too many rules, and high taxes hold us back. If India fix these and
work smart with Chinesse money, we can be big in world trade.

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