A global tariff war will reduce exports and lead to imported inflation, which will hurt Indian purchasing power and investments, says Rabobank. A tariff war will reduce exports and lead to imported inflation, which will hurt Indian purchasing power and investments.
That could mean as much as 2.3% of missed GDP growth for India by 2022. This goes against the argument that India is relatively insulated from a trade war, given its low share of total world exports of just 1.7%.