New Delhi, 14 July (PTI) Indian exports to the US will become more competitive after the deposit of higher tariffs by Trump administration in countries, including China, Canada and Mexico, said Niti Aayog on Monday.
In its third edition “Trade Watch Quarterly”, Aayog said there would be significant opportunities for India, both in terms of the number of products and the volume of the US market.
“India is expected to gain competitiveness in 22 of the 30 best categories (HS 2 level), which is the market size of $ 2,285.2 billion,” Aayog said.
He also explained that China, Canada and Mexico are leading US exporters in these categories, and therefore higher tariffs in these countries 30 %, 35 %and 25 %will improve India’s competitiveness.
Aayog said that India’s competitiveness will remain unchanged in 6 out of 30 categories, which represents 32.8 % of US exports and 26 % of the US import, which is $ 26.5 billion.
While for six categories of HS 2 products, India faces higher average tariff (between 1-3 %) that can be negotiated with the US, Aayog said: “In 78 products, which represents 52 % of Indian exports and 26 % of the total US import, India is expected to gain competitiveness.”
In 17 products (representing 28 percent of Indian exports to the US) of the 100 best HS-4 products, Aayog said that India’s competitiveness remains unchanged due to no change in the tariff difference.
Aayog also pointed out that “India stands in industries with high tariffs vs. China, Canada and Mexico-minerals and fuels, clothing, electronics, plastics, furniture and seafood on the market of $ 1,265 billion”.
Meanwhile, the Ministry of the Ministry in the field of trade reached Washington for the next round of interviews about the proposed bilateral trade agreement (BTA), which will start on Monday.
On Wednesday, the main negotiator of India and a special secretary at the Ministry of Trade Rajesh Agrawal will join the team.
Four -day interviews will end on Thursday.
The Indian Deputy Chief Negler for the proposed BTA reached Washington for interviews on the first phase of BTA, the clerk said.
The visit is important because both sides must withstand problems in the sector, such as agriculture and cars. It is also important because the US further postponed the storage of other tariffs in several countries, including India, until August 1.
At the beginning of this month, the Indian team in Washington was for interviews, and the negotiations took place from 26 June to 2 July. The team reached the US to negotiate.
India hardened its position in American demand for concessions for Agri and dairy products. The new Delhi has not yet had any concessions to any of its business partners in the free trade agreement in the milk sector.
India is looking for removal of this additional tariff (26 %). It also seeks to release tariffs on steel and aluminum industry (50 %) and car (25 %).
Against them, India reserved its right under the WTO standards (World Trade Organization) to impose retaliation.
US President Donald Trump announced heavy tariffs in many countries, including India, April 2. Soon, however, it was postponed for 90 days to 9 July and later 1 August.
Since July 7, Trump’s administration has issued many of its business partners, including Bangladesh, Indonesia, Japan, South Korea, Malaysia, Thailand, South Africa, Bosnia and Herzegovina, Kazoda, Kazakhstan, Laos, Serbia and Tunis.
The US wants concessions of certain industrial goods, cars, especially electric vehicles, wines, petrochemical products and agricultural goods such as milk objects, apples, tree matrix and genetically modified crops.
On the other hand, India is looking for concessions for industries demanding work, such as textiles, gems and jewelry, leather goods, clothing, plastics, chemicals, shrimp, oil seeds, grapes and bananas in the proposed business pact.
Both countries are going to conclude interviews for the first trance of the proposed bilateral trade agreement (BTA) in the autumn (September-October) this year. Previously, they are looking for a provisional trade agreement.
Indian exports of goods to the US increased in April by 21.78 % to $ 17.25 billion, while imports increased by 25.8 % to $ 8.87 billion.
(Tagstotranslate) India
