New Delhi: India has identified at least 10 sectors, including apparel and clothing accessories, chemicals, plastics and rubber, where high US tariffs give New Delhi a competitive advantage in the American market over other suppliers, said officials in the know.
The idea is to capitalise on the advantage in these sectors, which also include vehicles, other than railways, mineral fuel and pharmaceuticals, in the coming months to compensate for the loss in categories impacted by high tariffs.
While India faces a 10% ‘baseline’ tariff after the US suspended the 26% ‘reciprocal’ duties for 90 days, the levy remains at 145% on China, the biggest exporter to the US.
Providing support to advantageous exports is crucial, as competitors such as Vietnam, Bangladesh and Cambodia are offering duty and other concessions to the US.
“Our internal assessment shows that of the 30 top imports into the US, India has a competitive advantage on one-third, or roughly 10 products, and a higher scope to get more US market share,” said an official.
Niti Aayog’s analysis shows China’s share of US’ apparel imports at 25%, compared with India’s 3.8%, leaving a huge opportunity for India with the high tariff differential.
Eyeing prelude to BTA by July
The US imports electronics worth $900 billion, of which China’s share is over 50% against India’s 7%, again giving scope to New Delhi to increase shipments.
“Also, there are (other) export opportunities arising because of the US-China tariff war. We are exploring those too,” said another official.
Gems and jewellery, and articles of iron and steel are also areas where India can benefit.
Exploring such opportunities on a fast-track basis is crucial to aid the target of doubling India-US trade to $500 billion by 2030.
The 26% rate is expected to return on July 9, by when the two sides hope to sign an early harvest trade deal. This would be a prelude to a bilateral trade agreement, the first phase of which they aim to conclude in September-October.
“There are about 175 tariff lines, or product categories, including toys, essential oils, confectionery, footwear and leather products, where India is now much more competitive than China and can garner more market share,” said Ajay Sahai, director general of the Federation of Indian Export Organisations.
According to an apparel exporter, American buyers were earlier sourcing 30-40% from China and that market is now open for other players as well. The US imports about $120 billion in textile and apparel annually.
The idea is to capitalise on the advantage in these sectors, which also include vehicles, other than railways, mineral fuel and pharmaceuticals, in the coming months to compensate for the loss in categories impacted by high tariffs.
While India faces a 10% ‘baseline’ tariff after the US suspended the 26% ‘reciprocal’ duties for 90 days, the levy remains at 145% on China, the biggest exporter to the US.
Providing support to advantageous exports is crucial, as competitors such as Vietnam, Bangladesh and Cambodia are offering duty and other concessions to the US.
“Our internal assessment shows that of the 30 top imports into the US, India has a competitive advantage on one-third, or roughly 10 products, and a higher scope to get more US market share,” said an official.
Niti Aayog’s analysis shows China’s share of US’ apparel imports at 25%, compared with India’s 3.8%, leaving a huge opportunity for India with the high tariff differential.
Eyeing prelude to BTA by July
The US imports electronics worth $900 billion, of which China’s share is over 50% against India’s 7%, again giving scope to New Delhi to increase shipments.
“Also, there are (other) export opportunities arising because of the US-China tariff war. We are exploring those too,” said another official.
Gems and jewellery, and articles of iron and steel are also areas where India can benefit.
Exploring such opportunities on a fast-track basis is crucial to aid the target of doubling India-US trade to $500 billion by 2030.
The 26% rate is expected to return on July 9, by when the two sides hope to sign an early harvest trade deal. This would be a prelude to a bilateral trade agreement, the first phase of which they aim to conclude in September-October.
“There are about 175 tariff lines, or product categories, including toys, essential oils, confectionery, footwear and leather products, where India is now much more competitive than China and can garner more market share,” said Ajay Sahai, director general of the Federation of Indian Export Organisations.
According to an apparel exporter, American buyers were earlier sourcing 30-40% from China and that market is now open for other players as well. The US imports about $120 billion in textile and apparel annually.
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