New Delhi, Feb 4 (PTI) – The ongoing trade conflict between the United States and China is expected to create new opportunities for Indian exporters, potentially boosting shipments to the American market, according to industry sources.
India had already emerged as the fourth-largest beneficiary when former US President Donald Trump imposed higher tariffs on Chinese goods during his first term. With Trump back in office, his latest order on Saturday to impose stiff tariffs on Chinese imports is expected to reinforce this trend.
Opportunities for Indian Exports
Experts suggest that the trade diversion caused by these tariffs will make Chinese products more expensive in the US market, prompting American buyers to seek alternative suppliers. This shift could work in India’s favor, presenting a lucrative opportunity for Indian businesses."India is likely to gain significantly from this trade war, with exports expected to rise in multiple sectors," a source stated.
Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO), echoed this sentiment, emphasizing that the new tariffs on Chinese goods could spur demand for Indian products.
"The move creates export opportunities for India due to the trade diversion effect, as US buyers will look for alternative suppliers to avoid higher costs," Sahai explained.
Sectors Poised to Benefit
India's export competitiveness and production capacity will play a crucial role in determining the extent of benefits reaped from the trade war. According to Sahai, key sectors likely to see a surge in demand include:- Electrical machinery and components
- Auto components
- Mobile phones
- Pharmaceuticals
- Chemicals
- Apparel and fabrics
US-India Trade Relations
During April-November 2024-25, bilateral trade in goods between India and the US stood at $82.52 billion, with $52.89 billion in exports and $29.63 billion in imports, resulting in a trade surplus of $23.26 billion in India’s favor. The US had previously been India’s largest trading partner from 2021 to 2024, reinforcing the significance of this economic relationship.With tariffs reshaping global supply chains, Indian exporters are positioning themselves to capitalize on the shifting trade dynamics, potentially strengthening the country's foothold in the US market.
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