Indian equity markets could come under pressure over the fresh tension between the US and India over trade as India retaliated with tariffs on 29 American products.
This decision followed the US ending India’s $5.6 billiontrade concessions under the Generalised System of Preferences (GSP) programme.
Last year, the US imposed duties on steel and aluminium fromIndia following which a retaliation was deferred until now.
Several analysts have said investors sentiments would beimpacted.
“Tariffs to the tune of $400-450 million from allbilateral trade of 142 billion dollar with the US — this shows that the impactis insignificant,” said Ajay Sahai is the Director General and CEO of theFederation of Indian Export Organisations (FIEO).The US-China trade war has long troubled theglobal financial markets. The damage was such that the global growth took abeating, as noted the International Monetary Fund (IMF).