The US-China Trade War has caught China off-guard and has disturbed the Chinese economy big time. Experts feel that India could emerge as a beneficiary of this trade rift between the Asian neighbor and the US.
The Confederation of Indian Industry (CII) stated on Sunday that with China coming under immense pressure from the additional tariffs levied by the US, Indian goods might become more competitive.
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Experts feel that India should now focus more on the markets in the US and take advantage of the trade war. The CII said that India should now tend to focus more on exports to the US and China as both these nations have now imposed tariffs on imports from each other. CII stated that India should put a greater impetus on the exports of machinery, electrical equipment, rubber, automobile parts, and chemical and rubber products to create a winning situation for itself.
The CII also highlighted the fact that textiles, footwear, toys, games and cell phone industries are becoming highly competitive in India and must be further encouraged. The CII also noted that India should look to encourage more FDI from the US by garnering greater confidence between the two nations in terms of economic cooperation. The CII stated that for India, the key lies in increasing its productivity by achieving technical innovations.
The CII also proposed that India must bank on trade dialogues with the US in a more planned and improvised manner. CII envisages a great opportunity for India as the US looks to oust China by stamping tariffs on almost all imports from China. Donald Trump recently stated that the tariffs are working well and he would not fear imposing tariffs on all Chinese imports.
The CII identified and examined more than 800 production lines while the US has increased tariffs on Chinese imports. While there was an accelerated growth of Chinese exports to the US between 2012 and 2017, now the exports have stumbled.