The idea is to take advantage of these sectors to include railways, mineral fuels and pharmaceutical vehicles in the coming months to cover the category losses affected by high tariffs.
Although India faces a 10% “benchmark” tariff after the U.S. suspends its 26% “countdown” duty, the tax is still 145%, the largest exporter in the U.S.
Supporting favorable exports is crucial as competitors such as Vietnam, Bangladesh and Cambodia are offering responsibilities and other benefits to the United States.
“Our internal assessment shows that of the 30 high-level imports entering the U.S., India has a competitive advantage in one third or about 10 products and has a higher range to gain more U.S. market share,” an official said.
Niti Aayog’s analysis shows that China’s clothing import share is 25%, while India’s 3.8% provides a huge opportunity for India, with high tariff differences.
Watching the prelude of BTA before July
The United States imported $900 billion worth of electronic products, with China having more than 50% of its share and 7% of India, again providing New Delhi with a range to increase freight.
“In addition, due to the US-China tariff war, (other) export opportunities (other) export opportunities. We are also exploring these opportunities.”
Gems and jewelry and iron and steel items are also areas where India can benefit.
Exploring this opportunity quickly is crucial to help double India-U.S. trade to $500 billion by 2030.
The 26% interest rate is expected to return on July 9, when both sides hope to sign an early harvest trade agreement. This will be the prelude to the bilateral trade agreement, which aims to end in the first phase between September and October.
“There are about 175 tariff lines or product categories including toys, essential oils, candy, footwear and leather products, India is now more competitive than China and can gain more market share.”
According to apparel exporters, U.S. buyers sourcing 30-40% from China earlier, and the market is now open to other participants. The United States imports about $120 billion in textiles and clothing every year.
