Syllabus: GS-III, Subject: Economy Topic: Trade and External Sector, Issue: Trade Diplomacy
Context: Hike in customs duties targeted at imports of Chinese components and inputs.
Trade diplomacy is the use of diplomatic strategies and negotiations to promote international trade and economic cooperation between nations.
+1 Advantage (for Mains)
- China’s share in the total Indian merchandise imports and exports (FY2023) stands at 14% and 3%, respectively.
- This import dependency has left India vulnerable to supply chain disruption.
Related Concepts:
- China +1 strategy is a business strategy aimed at diversifying supply chains and manufacturing operations to reduce over-reliance on China.
- Most Favoured Nation (MFN) rate: is the standard tariff that a member country of the WTO applies to imports from all other WTO members.
- Unless there’s a specific trade agreement in place.
