India Poised to Capitalize as US Tightens Chinese E-commerce Imports

As the US imposes heavy tariffs on Chinese low-value e-commerce imports, India is presented with an opportunity to boost its online exports. To capitalize on this, India must address banking, customs, and export incentives issues to support its small online sellers.

The recent tightening of US policies on low-value e-commerce shipments from China has paved the way for Indian exporters to step in and fill the void, according to the Global Trade Research Initiative (GTRI). With significant potential in customized products like handicrafts, India's online sellers could thrive if bureaucratic hurdles are managed effectively.

The US will impose a 120% import duty on Chinese shipments under USD 800 from May 2, disrupting Chinese supply chains. The GTRI believes India is well-positioned to capture this market, provided it addresses current bottlenecks in banking, customs, and export incentives, a stance reinforced by GTRI Founder Ajay Srivastava.

To leverage these opportunities, experts recommend modernizing India's trade infrastructure and policies, suggesting banking system reforms, digitized customs processes, and inclusion of small exporters in credit programs. Such changes could ignite a new wave of inclusive growth in India's e-commerce sector.

(With inputs from agencies.)