Trump Tariffs Risk Deepening $6.3 Trillion India-China Stock Gap

President Donald Trump’s tariff escalation with India is putting its stock market at risk of falling further behind China — the very country India has been trying to supplant as the world’s next major engine of growth.

India’s equity market now trails onshore China’s by $6.3 trillion, the widest gap since March. The MSCI India Index is lagging its Chinese counterpart by 10 percentage points this quarter and is on pace for its biggest annual underperformance since 2017.