The Ripple Effect of U.S. Tariff Restructuring: India Rises Amidst Chinese Decline

The U.S.' restructuring of tariffs has shifted the landscape of key product suppliers, benefiting India at the expense of China and Canada. India's share in U.S. electronics exports rose significantly, while China's share declined. The trend is mirrored in textiles, and agriculture sectors, with India maintaining strong growth despite potential challenges.

The recent tariff restructuring by the United States has significantly altered the landscape for key product suppliers to the American market. India has emerged as a notable beneficiary, capitalizing on the market space left by China and Canada, an official confirmed Monday.

A detailed analysis shows a substantial increase in India's share of the U.S. electronics export market, rising to 7.2% compared to last year's 3.5%, while China's share plummeted from 22% to 11%. This growth is primarily driven by the electronics sector, especially smartphones and solar cells, with India's electronics exports up 47% to reach USD 12.41 billion in April-June.

The trend continues in textiles and agriculture sectors, with China's textile exports to the U.S. dropping from 27% to 14%, as India's share rose from 9% to 12%. Despite high tariffs threatening specific sectors, such as chemicals, India maintains a stronghold on the U.S. generic drugs market, holding a 40% share, thanks to the competitive pricing.

(With inputs from agencies.)