The Ripple Effect of U.S. Tariff Restructuring: India Rises Amidst Chinese Decline

The recent tariff restructuring by the United States has significantly altered the landscape for key product suppliers to the American market. India has emerged as a notable beneficiary, capitalizing on the market space left by China and Canada, an official confirmed Monday.

A detailed analysis shows a substantial increase in India's share of the U.S. electronics export market, rising to 7.2% compared to last year's 3.5%, while China's share plummeted from 22% to 11%. This growth is primarily driven by the electronics sector, especially smartphones and solar cells, with India's electronics exports up 47% to reach USD 12.41 billion in April-June.

The trend continues in textiles and agriculture sectors, with China's textile exports to the U.S. dropping from 27% to 14%, as India's share rose from 9% to 12%. Despite high tariffs threatening specific sectors, such as chemicals, India maintains a stronghold on the U.S. generic drugs market, holding a 40% share, thanks to the competitive pricing.

(With inputs from agencies.)