India has edge in minerals, fuels, electronics under current US tariffs: Niti Aayog
The Aayog's analysis, which is part of its Trade Watch Quarterly report for October-December quarter of 2024-25 released on Monday, comes at a time when India is in the final leg of firming up a trade deal with the US.
As per the report, the sectors where India stands to gain include minerals and fuels, apparel, electronics, plastics, furniture and seafood. The Aayog has pegged the market size for these products at $1,265 billion.
The report said India is expected to gain competitiveness in 22 out of top 30 products in the HS 2 categories, representing a market size of $2,285.2 billion and in 78 products out of top 100 in HS 4 categories.
It further explained that China, Canada and Mexico are the leading exporters to the US in these categories, therefore higher tariffs on these countries at 30 per cent, 35 per cent and 25 per cent, respectively, will enhance India's competitiveness.
"Significant opportunity for India in US markets both in terms of the number of products and volume of the US market," the Aayog said in its report. "India's relative tariff advantage vis-a-vis major competitors presents a strategic window to expand market share in the US market, especially in sectors such as pharmaceuticals, textiles, and electrical machinery, among others," it said.>
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