India's Chemical Export Opportunity: A US Market Shift

A State Bank of India report suggests India can boost its GDP by 0.3% by capturing chemical export market share from China, Singapore, and others. By negotiating tariffs below 25%, India's competitiveness in the US market could increase significantly.

India stands poised to significantly increase its chemical exports to the United States, provided it can negotiate tariffs below 25 percent. This opportunity is outlined in a recent State Bank of India (SBI) report, suggesting India can capture market share from China and Singapore.

The report highlights that if India captures just 2 percent of the chemical export share from China and Singapore, it could raise its GDP by 0.2 percent. Currently, these countries outpace India in chemical exports to the US, but with China's tariffs rising, the landscape is ripe for change.

With its comparative advantage in chemicals, India could enhance its competitiveness by addressing tariff structures. Additionally, increasing its share from Japan, Malaysia, and South Korea could further contribute to a total GDP increase of 0.3 percent, showcasing a significant economic opportunity.

(With inputs from agencies.)