1. It will hurt the Indian poor the most due to their price sensitivity. Richer Indians may still survive this ban by buying costlier goods but a number of poor consumers can not afford high priced goods.
2. It will make Indian producers and exporters suffer the brunt because there are several businesses in India importing immediate goods and raw materials that are used to create final goods for the domestic Indian market and global market.
3. India may lose policy credibility. It will be hugely detrimental for a country such as India which has been trying to attract foreign investment.
4. If India and China stop trading, then China would lose only 3% of its exports and less than 1% of its imports, while India will lose 5% of its exports and 14% of its imports.
