Indian exports to US gain edge as US hikes China tariffs

Indian exports to the US will become more competitive following imposition of higher tariffs by the Trump administration on countries, including China, Canada, and Mexico, Niti Aayog said in a report on Monday.

- Press Trust of India

The Aayog in its third edition of Trade Watch Quarterly’, said there will be significant opportunities for India in the US markets both in terms of the number of products and volume of the US market.

“India is expected to gain competitiveness in 22 out of the top 30 categories (HS 2 level), representing a market size of $2,285.2 billion,” the Aayog said.

It further explained that China, Canada, and Mexico are the leading exporters to the US in these categories, therefore higher tariffs on these countries at 30%, 35%, and 25%, respectively, will enhance India’s competitiveness.

The Aayog said India’s competitiveness will remain unchanged in 6 out of 30 categories, amounting for 32.8% exports to the US and 26% of the US total imports, amounting to $26.5 billion.