Trade Tensions Pave Way for India's Export Surge to the US

The escalating trade war between the United States and China is opening new avenues for Indian exporters seeking to expand their footprint in the American market. Experts predict significant gains for India amidst heightened US tariffs on Chinese imports.

The Federation of Indian Export Organisations President, S C Ralhan, views the US's decision to slap additional 100% tariffs on Chinese products as a potential catalyst for increasing Indian shipments to America. As the US raises overall tariff rates on Chinese imports to about 130%, India could see a shift in demand toward its goods, having exported $86 billion to the US in the 2024-25 fiscal year.

This trade maneuver by the US comes as a reaction to China's imposition of new controls on rare earth exports, crucial for American industries like defense and clean energy. With current US tariffs on Indian goods already higher than those on Chinese products, Indian exporters, including leaders in textiles and toys, anticipate capturing a larger share of the market, especially as major buyers like Target express interest in Indian offerings.

(With inputs from agencies.)