Home Current Affairs (April-June 2025) MCQs

Question

If a significant trade war erupts between the US and China, what would be the MOST significant implication for the Indian economy?

  1. Increased export opportunities to both countries
  2. Decreased foreign investment in India
  3. Increased protectionism and trade barriers globally
  4. A decline in the Indian Rupee's value

Answer:

Option C: Increased protectionism and trade barriers globally

Detailed Solution:

The correct answer is “Increased protectionism and trade barriers globally”.

A trade war would likely lead to increased protectionism globally, negatively impacting global trade and potentially harming Indian exports.