In the wake of escalating trade tensions between the United States and China, concerns are mounting over the possibility of India becoming a dumping ground for Chinese products, particularly electric vehicles (EVs) and batteries.
A recent report from the Global Trade Research Initiative (GTRI) has sounded the alarm on this potential scenario.
The imposition of heavy tariffs by U.S. President Joe Biden on various Chinese goods, including electric vehicles, batteries, steel, solar cells, and aluminum, has triggered fears that China might redirect its surplus products to other markets, with India being a prime target.
The GTRI report underlines the strategic importance for India to remain vigilant against such a move by Beijing.
With the U.S. and the European Union (EU) reducing imports of electric vehicles from China, there's a risk that China could resort to dumping these products in countries like India.
President Biden's tariffs include a 100 percent duty on electric vehicles, a 50 percent duty on semiconductors, and a 25 percent duty on electric vehicle batteries imported from China.
Biden, in a recent address from the White House, emphasized the need for fair competition, accusing China of unfairly controlling markets across various industries through state subsidies.
While the tariff hikes present opportunities for India in certain sectors such as medical equipment, including face masks, syringes, gloves, and natural graphite, the country's net import status in key areas like EVs and semiconductors could limit its export advantages, according to GTRI founder Ajay Srivastava.
Srivastava also stressed the necessity for India to develop a comprehensive strategy to navigate its trade relations with China, given the proactive measures being taken by the U.S. and EU to reduce reliance on Chinese imports.
Follow us
