Discuss the implications of the rising trend of protectionism and tariff wars in global trade for India's macroeconomic stability.

The economic slowdown is highlighted rising Gap economic fragmentation due to rising global protectionism and trade reciprocation. Tariffs in country (Example of Protectionism): - Technological Recoupling - China Racing labels of quantify (eg ECG-CBAM) Negative impact on Macroeconomic Stability: (1) Reduce stress in Indian imports to Foreign markets => used reduce exporting income and thus ii Capital flight resulting in currency depreciation

iii Negatively affect Growth prospects a Growth estimate downswed valuation by 0.2% due to USA tariffs CADA ii May increase imported inflation due to shortage supply chain constraints by J.A.I. GPUs to India restricted Positive implications: (1) Will increase self reliance to Atmanirbhar Bharat Mission ii Reduce exposure to global shocks such as covid crises iii Improved strategic selection with allies due to Friendshoring (Economic Security) Way forward: (1) use trade agreements to increase access CESTO ii Build domestic manufacturing capabilities iii Increased economic integration of South Asia via increasing protectionism must be tackled with geopolitical & economic prudence