India Navigates Opportunities Amid US-China Tariff Truce

The US-China decision to suspend tariff hikes for 90 days offers both challenges and opportunities for India. While this may boost bilateral trade between the US and China, it poses competition for Indian exporters. India aims to strengthen its exports in unaffected sectors and expand manufacturing under government schemes.

The recent pause in tariff hikes by the US and China offers both challenges and opportunities for India, say exporters. Although the global trade stability benefits, Indian exporters face increased competition in sectors like electronics, machinery, and chemicals, according to the Federation of Indian Export Organisations (FIEO).

FIEO President SC Ralhan noted the tariff reduction would likely lead to a surge in US-China trade, affecting Indian exporters in regions such as Southeast Asia and Latin America. However, India could leverage sectors less impacted by US-China trade, like pharmaceutical APIs and IT services.

Ralhan highlighted the need for proactive Indian engagement with the US to secure and enhance preferential trade access, especially in electronics and textiles through the Make in India and PLI initiatives. The Indian government is advised to monitor imports from China closely as future volatility remains a concern.

(With inputs from agencies.)