According to a latest commerce ministry study, the extra US tariffs on its imports from China have opened a window of opportunity for India to push for higher exports in 171 items — ranging from textiles to marine products — with additional outbound shipment potential of up to $8.7 billion a year.
The Trump administration has announced an extra levy of up to 25 per cent on $250-billion Chinese supplies in two phases, which will make Indian products more competitive than China’s in the US market. The first round of higher duties on $50-billion Chinese goods has created the space for India to tap the export window in close to three dozen items with potential annual supplies of $2.1 billion.
Similarly, in the second round of duty increase, India has the scope to drive up exports in 135-171 products, with potential outbound shipments of $5-6.6 billion a year. These Chinese goods face additional American tariff of 10 per cent up to end-December, after which it will be raised to 25 per cent. The US is India’s largest merchandise export destination with exports to the country touching $48 billion in 2017-18.
The products where India can make inroads into the American market with greater vigour include shrimps and prawns, yarn, fabrics, man-made filament, copper and products made of such base metals, steel and iron products, garlic, berries, sugar confections, oilcake, distillate fuel oil, organic compounds, certain plastic, leather, rubber and wooden products.
