New Delhi: India has drawn a list of goods it can export to China, replacing U.S. exports that have become costlier in light of the trade spat between the world’s two biggest economies, according to a news report.
India has identified more than 40 products, including fresh grapes, cotton linters, flue-cured tobacco and alloy steel seamless boiler, where it’s in a position of advantage to replace or capture U.S. trade market share with China, a person told Bloomberg on the condition of anonymity.
Boosting exports will help India reduce a $63 billion trade deficit it runs with China, which is also New Delhi’s largest commercial partner.
A study found that India is strong in its capability to export about 20 products such as frozen bovine meat and almonds, but it faces market-access issues in China.
China recently started purchasing soybean from Brazil after slapping a 25 percent tariff on the oilseed’s shipments from the U.S. as the trade tensions between the two nations intensified.
Meetings between Chinese and U.S. officials last week made little headway, setting the stage for the U.S. to push ahead with the next round of tariffs on up to USD 200 billion worth of Chinese goods.
The Indian study shows at least 80 more items have potential for exports to China. The government has instructed its departments and industry bodies to work out strategies to ramp up production in sectors where India has a clear advantage.
The commerce ministry has asked the embassy in China to be an enabler, while offering business-to-business meetings for Indian exporters interested in that market, the person said.
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