U.S.-China trade war can make Indian products competitive, says CII report

Products such as vehicles and auto parts have a higher potential for export to the U.S.   | Photo Credit: Reuters

With the U.S. imposing an additional 25% duty on imports worth $34 billion from China, certain Indian products may become more competitive, the CII said.

An analysis by the industry chamber revealed that India should focus on the U.S. market for items in the categories of machinery, electrical equipment, vehicles and transport parts, chemicals, plastics and rubber products.

Tariffs increased

India can focus on several goods for expanding its exports to the U.S. and China after the increase in duties by both countries on imports from each other. Top exports from India to the U.S. which are covered in the list of items for which the tariffs have been raised include pumps, parts of military aircraft, parts for electro-diagnostic apparatus, passenger vehicles of 1500-3000 cc, valve bodies and parts of taps.

Exports of these items stood at more than $50 million in 2017, according to CII, and can be increased with concerted efforts. Countries such as Vietnam, Indonesia, Thailand and Malaysia have increased their exports of these products to the U.S. in recent years, it noted.

Based on India’s current exports to the U.S. in these categories, products such as intermediate parts for the defence and aerospace sector, vehicles and auto parts, engineering goods, etc. have higher potential for export.

“Sectors like apparel and textiles, footwear, toys and games and cell phone manufacturing are becoming competitive industries in India and need to be encouraged,” CII said. It suggested that trade talks with the U.S. be strategised taking into account India’s competitive advantage in these products.

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Printable version | Nov 20, 2020 8:38:50 PM |

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