India could gain an additional $25 billion in exports if the US launches a tariff war with China, an internal analysis conducted by the Federation of Indian Export Organizations (FIEO) has found.
According to FIEO’s analysis, potential sectors where India could replace some of its exports from China include electronics and appliances, auto parts and components, organic chemicals, apparel and textiles, footwear, furniture and Includes home decor, toys, etc. Presenting the data before Union Finance Minister Nirmala Sitharaman at a pre-Budget meeting, the FIEO chairman urged the government to invest Rs 250 million annually in three years (totaling Rs 750 million in total), with a focus on the US. He asked them to announce a new marketing plan with a corpus of Rs. ) Take advantage of opportunities arising from a potential US-China trade war.
According to the FIEO study, India can replace China in various sectors based on its competitive strengths such as cost efficiency, quality, skilled labor and manufacturing capacity. In the areas of consumer electronics (mobile phones, televisions, etc.), electrical equipment, parts and accessories, FIEO sees a $10 billion opportunity if the US decides to replace Indian products with Chinese products. . Similarly, India, which is one of the world’s largest textile manufacturing and exporting countries and has an established export base in the US, could also add $2.5 billion in additional export revenue from US toys and auto parts. be. Other areas include additional export revenue from U.S. toys and auto parts, which FIEO expects to generate $1.5 billion each. Export opportunities for Indian manufacturers. The potential for additional export earnings for other sectors such as footwear, furniture, upholstery and chemicals is estimated at $1 billion each.
“With tariffs on China increasing, India is in a good position to benefit by entering sectors such as electronics, textiles, toys and games, chemicals, footwear, furniture and auto parts. India will focus on showcase to make the most of India can leverage the growing number of non-Chinese players in the U.S. market by working with U.S. industry associations to expand its market presence, while having competitive advantages in terms of cost, quality, and sustainability. We can capture the demand for imported goods,” Ashwani said. FIEO President Kumar says:
In his interaction with the finance minister before the budget, the FIEO chairman also called for continuation of the interest equalization scheme to provide a level playing field to Indian exporters. The federation sought government support to invest in research and development and create a national shipping company with a global reputation.
