India likely to get more entangled in trade war amid supply chain shift

As the global economy continues to reconfigure itself in the aftermath of the pandemic and rising geopolitical tensions, India finds itself at the crossroads of opportunity and risk. The evolving dynamics of global supply chains, triggered largely by the U.S.-China trade war, Russia’s conflict with Ukraine, and shifting trade alliances, have led to significant supply chain realignments. India, with its vast manufacturing potential and demographic advantage, is emerging as a preferred alternative to China. However, this repositioning comes with its own set of challenges—most notably, the increasing risk of being drawn deeper into global trade conflicts. The Supply Chain Pivot Towards India In recent years, global companies have been diversifying their manufacturing bases to reduce over-dependence on China, a strategy known as "China Plus One." India, alongside Vietnam, Mexico, and Indonesia, has become a natural candidate for this diversification. Multinational giants such as Apple, Samsung, and Tesla are exploring or expanding their production in India. The government's efforts to support this shift through initiatives like Production Linked Incentive (PLI) schemes, "Make in India," and infrastructure upgrades have further strengthened India’s position. However, as India integrates more deeply into global supply networks, it must also navigate the rising complexities of global trade politics. Tariff battles, sanctions, and protectionist policies are becoming more frequent, and India’s increased participation in global supply chains might expose it to retaliatory trade actions from major economies. The U.S.-China Rivalry: A Double-Edged Sword for India India’s growing alignment with the United