Informist New Delhi

The Indian economy is likely to emerge stronger amid the ongoing tariff war as the US intends to decouple from China, Sixteenth Finance Commission Chairman Arvind Panagariya said. The impact of the tariff war on global trade would become clear in the next three months, Panagariya added.

"US-China conflict is set to stay here," Panagariya said at Isaac Centre for Public Policy's Growth Conference on Friday. Indian exporters may gain market access in the US if the latter delinks from China, Panagariya added. Washington and Beijing have been at loggerheads since April after US President Donald Trump launched a trade war with China with a levy of 145% tariff on Chinese goods. Beijing also retaliated with 125% duty on American goods. 

The US is also likely to impose its reciprocal tariff on Indian goods in July. However, Indian trade ministry officials are negotiating for a trade deal with their American counterparts on mission mode.