India's exports to remain unchanged in key product categories despite US tariffs: NITI Aayog Report
'The data suggests strong growth opportunities in targeted product categories while highlighting areas where India's export status is expected to remain unchanged,' the report added.
NITI Aayog further stated that India stands to gain a significant edge in the US export market, which highlights strong growth potential in key product categories and a favourable trade environment vis-a-vis China.
The trade report reveals that India maintains a relatively strong and competitive position in the US market, despite facing slightly higher tariffs. More notably, India enjoys a distinct advantage over China in several critical sectors. The average tariff differential between Indian and Chinese exports stands at a significant 20.5 per cent in India's favour.
The Think Tank stated that India maintains a relatively strong and competitive position in the US market despite facing marginally higher tariffs.
NITI Aayog stated that analysing the top 30 product categories at the HS 2 level reveals insights into India's tariff positioning in the US market. Tariffs on the competitors are higher than India's in 22 out of these top 30 products.
In 6 of the top 30 categories, India faces slightly higher average tariffs, up to 3 per cent, than other leading exporters, with the majority of them with marginally higher tariffs between 0 and 2 per cent. These specific product categories account for over 12 per cent of total US imports, underscoring the scale of opportunity available for Indian exporters.
'Additionally, these differences are modest and present a strategic opportunity for India to engage in targeted negotiations with the United States,' the report added.
It further added that the lower tariff burden presents India with a unique opportunity to gain market share, especially in categories where China is losing its competitive footing.
The findings come amid shifting global trade dynamics, where businesses are looking to diversify supply chains away from China--a trend often referred to as 'China+1'.
Earlier US President Donald Trump on April 2 of the current year announced reciprocal tariffs on trading partners, which were designed to address trade imbalances and implement 'fair and balanced' trade relationships, as termed by the US President.
Trump on Saturday announced a 30 per cent tariff on goods from Mexico and the European Union starting August 1, intensifying trade tensions with two of the country's top economic partners.
This week, Trump has posted multiple letters on the social media platform Truth Social, warning more than a dozen countries that he plans to impose steep tariffs on their imports starting August 1. The Hill highlighted that these tariffs were originally proposed in April but were paused for 90 days to allow for negotiation.
India is negotiating a free trade agreement with the US, and talks are going on between the trade representatives of both nations in US (ANI)
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