The Commerce Department sees an opportunity for Indian exporters as a result of the trade war with China and has identified nearly 180 items allowing Indian players to seize the opportunity afforded by the increased rate of Chinese products.
The products are distributed in sectors ranging from technical products to automotive parts and certain chemicals, according to sources. The department, which is trying to boost Indian exports at a time when the trade deficit is growing, has begun to alert trade organizations and urge them to take advantage of the opportunities they are offered.
The list contains engines and components used in vehicles, with the exception of special chemicals. Although the government’s list covers Chinese exports from about $ 8 Billion to $ 10 Billion, which would be affected by rising import tariffs in the US, sources said, Indian exporters could consider conquering part of the market.
“It could be $2 Billion to $3 Billion or more, depending on the speed and efficiency of Indian companies,” a source said. The Donald Trump government has applied tariffs on imported goods worth $250 Billion from China, which accounts for about half of China’s imports.
The decision was thwarted by Beijing, which announced an increase in export taxes of $110 Billion to China. This sharp rise comes as India faces a growing trade deficit and Rupee is under pressure due to concerns over the current trade deficit, where the problem has been worsened by the taking out of foreign investors from the region.
The current trade deficit represents the variance amid exports and imports, investments and transfers. The Ministry of Commerce held a similar exercise for China and in a report the government said that retaliatory measures were a way to reinforce Indian exports to the neighbor, which could help the trade deficit, which is a major area of concern.