US-China trade war: Indian products to be more competitive
With the US imposing additional 25 percent duty on imports worth USD 34 billion from China, certain Indian products may become more competitive, CII said today.
An analysis by the industry chamber revealed that India should focus on the US market for items in the categories of machinery, electrical equipment, vehicles and transport parts, chemicals, plastics and rubber products.
Top exports from India to the US which are covered in the list of items for which tariffs have been hiked include pumps, parts of military aircraft, parts for electrodiagnostic apparatus, passenger vehicles of 1500-3000 cc, valve bodies and parts of taps, said the chamber.
Exports of these items stood at over USD 50 million in 2017, according to CII, and can be increased with concerted efforts.
Based on India's current exports to the US in these categories, products such as intermediate parts for the defense and aerospace sector, vehicles, and auto parts, engineering goods, etc. have a higher potential for export, it said.
The chamber suggested that the trade dialogue with the US should be strategized taking into account India's competitive advantage in these products.
Moreover, foreign direct investments from the US should be encouraged by boosting the confidence of US firms in India’s business climate, said CII, adding that this might necessitate addressing their concerns regarding non-tariff barriers in India for better long-term outcomes.
In the domestic industry, it stated that it is important for India to enhance productivity while adding technology to its domestic production in the identified products.
CII examined 818 product lines where the US has raised tariffs for imports from China. Between 2012 and 2017, China's exports to the US have moved up the value chain with accelerated growth in high-technology items such as telecommunications equipment, automotive, cell phones, etc.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)