The tariff war between the US and China is giving an advantage to India as its exports to the neighboring country have increased by about 32 percent to USD 8.46 billion during the June-November 2018 period, exporters body FIEO said Thursday.
Exports to China had confirmed at USD 6.37 billion in June-November 2017.
In June and September 2018, the US announced high customs duties on various Chinese goods. In retaliation, China also increased levies on American goods.
Federation of Indian Export Organisations (FIEO) President Ganesh Kumar Gupta also alleged that during the period, India’s exports to the US grew by 12 percent.
“Exports to China jumped from USD 6.37 billion in June-November 2017 to USD 8.46 billion in June-November 2018,” Gupta confirmed in a statement.
He stated commodities that have exhibited high growth during the period to China include petroleum products, chemicals, cotton yarn, plastic raw material, and marine products.
“While tariff war is not good for the global trade, the same has come as an opportunity for other countries covering India. Our exports to China in June-November 2018 went up by 32 percent and to the US by 12 percent in the same period,” Gupta said.
If the tariff escalation continues, India has to grow production capabilities to meet the growing demand in both the markets, he added.
Growth in exports to China is useful for India as it has a huge trade deficit with the neighboring country.
The trade deficit with China increased to USD 63.12 billion in 2017-18 from USD 51.11 billion in 2016-17.
India is taking various steps to promote shipments to China. Recently it has managed to export agricultural goods such as non-basmati rice to China.