exporters should focus machinery, electrical equipment, vehicles and transport
parts, Chemicals, Plastics and Rubber Products in the United States market
following the country’s trade war with China, a report of the confederation of
Indian Industry has recommended to the Indian Industry.
points out countries like Vietnam, Indonesia, Thailand and Malaysia have
already increased their export of these products to United States in recent
CII Report said can focus on numerous goods for expanding its exports to the US
and China markets following the hike in duties by both countries on imports
from each other. With the US imposing additional duty of 25 per cent on imports
worth 34 billion US Dollars from China, certain Indian products may become more
Based on India’s current exports to the US in these categories, products
such as intermediate parts for the defense and aerospace sector, vehicles and
auto parts, engineering goods, etc. have a higher potential for export, noted
CII. Sectors like apparel and textiles, footwear, toys and games and cell phone
manufacturing are becoming competitive industries in India and need to be
CII has suggested
that the trade dialogue with the US should be strategized taking into account
India’s competitive advantage in these products. Foreign direct investments
from the US should be encouraged by boosting confidence of US companies in
India’s business climate. This might necessitate addressing their concerns
regarding non-tariff barriers in India for better outcomes in the long term.
domestic industry, CII stated that it is important for India to enhance
productivity while adding technology to its domestic production in the
identified products. The following recommendations were put forward:
MerchandiseH Exports from India Scheme (MEIS) under the
Foreign Trade Policy 2015-2020 includes major product groups of interest to the
US and should be used to build exports in the identified categories.
companies require better access to export credit to intensify the export
small and medium enterprises MSME should be supported in exporting intermediate
and high technology products. Trade facilitation must be a high priority to
lower transaction costs and enhance competitiveness.
The confederation of Indian Industry examined
818 product lines where the United States has raised tariffs for imports from
China. Between 2012 and 2017, China’s exports to the US have moved up the value
chain with accelerated growth in high technology items such as telecommunications
equipment, automotive, Cell phones.
exports from India to the United States which are covered in the list of items
for which the tariffs have been hiked include Pumps, Parts of Military
aircraft, parts for electro-diagnostic apparatus, passenger vehicles of 1500 to
3000CC, valve bodies and parts of taps.
these items stood at fifty million US Dollars in 2017 according to CII and can
be increased with concerted efforts said the CII release.