US Tariffs Open Gateway for Indian Export Surge

A steep 125% US tariff on Chinese imports presents a lucrative, albeit temporary, opportunity for India's small manufacturers to boost exports. With the right incentives and support, they can fill the gap left by China in the US market, especially in high-demand products.

The recent imposition of a 125% import tariff by the US on Chinese goods has opened a unique opportunity for small-scale Indian manufacturers, according to the Global Trade Research Initiative (GTRI). The GTRI suggests that this shift in trade dynamics could significantly benefit Indian exporters, provided they capitalize on the shifting trade landscape.

In 2024, the US imported over USD 148 billion in products predominantly from China. With China supplying nearly 72% of this, Indian manufacturers only accounted for a meager USD 4.3 billion, highlighting substantial growth potential. Under current conditions, the US imports USD 581 million in fireworks, with 96.7% sourced from China, leaving a substantial gap Indian exporters could fill.

The report emphasizes that for Indian producers to capitalize on this opportunity, necessary support in terms of export incentives, financing, and certification is crucial. It identifies high-potential product categories such as plastic tableware, locks, and hand tools, urging governmental departments like DPIIT and MSME to aid in modernizing Indian clusters for compliance with US market standards.

(With inputs from agencies.)