India to assess US-China trade war impact after inputs from industry

The Indian government is assessing the impact of US tariffs imposed on China and is consulting with industry representatives. India expects to benefit from increased US orders but is cautious about potential negative effects, including the risk of Chinese goods being dumped in the country due to excess capacity.

Negotiations for a Free Trade Agreement between India and Oman progress well, with another round of talks planned to resolve remaining issues. Progress was boosted by Commerce Minister Piyush Goyal’s visit to Muscat. The deal aims to expand economic cooperation, significantly reducing or eliminating customs duties on traded goods and easing trade norms.

India is reviewing import tariffs on over 30 items, including luxury cars and solar cells, to potentially increase imports from the US. This move aims to reduce average tariffs and improve trade ties amid global trade tensions. Consultations with local industry and various govt departments will determine the potential tariff reductions.

The government has extended the ban on exports of de-oiled rice bran till September 30, 2025, to help control domestic prices and ensure availability for cattle feed. Additionally, DGFT has updated norms regarding wastage and standard input-output for the export of jewellery to align with duty-free metal imports.

The renewed US-China trade war, sparked by Trump’s policies, presents India with lucrative economic opportunities from trade diversions and increased exports. While India stands to gain, it must navigate carefully to avoid falling into protectionist traps set by either superpower. Modi’s potential visit to the US could secure favorable trade terms.

India and the European Union are negotiating product-specific rules of origin for their bilateral free trade agreement to prevent circumvention and the inflow of cheap imports. The discussions include chemicals and textiles sectors, with the tenth round of negotiations scheduled for mid-March in Brussels.

India’s fruits and vegetable exports have surged by 47.3% from 2019-2020 to 2023-2024, fueled by financial aid schemes from APEDA. The support includes developing essential export facilities and quality management systems, participating in trade fairs, and expanding into 17 new markets over the last three years.

The government plans to set up BharatTradeNet, a unified platform for trade documentation and financing solutions similar to UPI. This ambitious project aims to digitize trade documentation, streamline interactions among various agencies, and enhance access to export credits. The initiative may take 2-3 years to be fully operational.

India is expected to benefit from the ongoing US-China trade war, with increased export orders and value. However, the country will not be entirely shielded from the repercussions. The imposition of tariffs by the US on Chinese goods could provide substantial opportunities for Indian exports, particularly in sectors like electrical machinery, auto components, and pharmaceuticals.

Narendra Modi US Visit: India is rapidly making concessions to the US to avoid a trade war under President Trump. Prime Minister Modi’s government has cut tariffs on various imports and agreed to accept unlawful migrants. Modi will meet Trump in Washington, with India aiming to strengthen trade, defense, and technology ties while attracting manufacturers […]