India's Trade Opportunities in the US Market
India is poised to benefit in sectors with high tariff disparities compared to competitors like China, Canada, and Mexico if current US tariffs on India remain unchanged, according to Niti Aayog's Trade Watch Quarterly report analysis.
Potential Sectors for Indian Gains
- Key sectors include minerals and fuels, apparel, electronics, plastics, furniture, and seafood.
- The market size for these products is estimated at $1,265 billion.
- India is expected to gain competitiveness in 22 out of the top 30 products in the HS 2 categories.
- India could also gain in 78 out of the top 100 products in HS 4 categories.
Competitive Advantage
- China, Canada, and Mexico are the leading exporters to the US in these categories.
- Higher US tariffs on these countries, at 30%, 35%, and 25% respectively, will enhance India's competitiveness.
Strategic Opportunities for India
- Significant opportunity for India in US markets, both in terms of the number of products and the volume of the US market.
- India's relative tariff advantage presents a strategic opportunity to expand its market share in the US.
- Sectors highlighted for potential growth include pharmaceuticals, textiles, and electrical machinery.
