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US China Trade War Latest News: The trade war between America and China has undoubtedly affected global trade, but some countries have also taken advantage of this opportunity. According to a report by economic think tank GTRI, Mexico, Canada and ASEAN, the association of South-East Asian countries, have benefited more than India from this conflict. Although India has also benefited during this period, it needs to further improve its business strategies.
According to the report, despite the trade war between the US and China, India’s exports have increased by $36.8 billion, with electronics, pharmaceuticals and engineering goods as key sectors. However, India is at sixth place in this list, while America benefited more than Mexico, Canada, Vietnam, South Korea and Germany.
Major sectors increasing India’s exports
The main reason for the increase in India’s exports is the increase in the production of smartphones, telecommunication equipment, medicines, petroleum oil and solar panels. Smartphones and telecommunication equipment contributed $6.2 billion, which is 17.2 percent of the total growth. Apart from this, pharmaceuticals contributed $4.5 billion (12.4 percent), petroleum oil contributed $2.5 billion (6.8 percent) and solar panels contributed $1.9 billion (5.3 percent).
GTRI suggested that India should increase local value addition in exports, as many products contain ingredients imported from China. For example, most of the components for smartphones are imported, solar cells for solar panels mostly come from China, and 70 percent of the APIs for medicines are also imported from China.
A new direction for the relationship between America and India
The economic think tank also said that Donald Trump becoming the President of America again could bring new opportunities for the Indian industry, as he is planning to impose new tariffs on Mexico, Canada, China and other countries.
India needs to understand that in the event of a trade war with the US, benefits can be achieved through strategic changes. Given the increasing demand for Indian exports in the US market, India may need to make minor changes in import duty to bring the average duty down to about 10 percent, which will not have any major impact on revenues.
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