India is seizing a major opportunity to expand its export footprint in the United States as the ongoing tariff war between Washington and Beijing creates fresh openings in the global trade landscape.
Officials familiar with the matter have indicated that New Delhi has identified at least 10 sectors where Indian exporters are well-positioned to benefit from the high US tariffs imposed on Chinese goods.
Among the sectors poised for growth are apparel and clothing accessories, chemicals, plastics, rubber, pharmaceuticals, and vehicles excluding those used in rail transport.
These sectors stand to gain as the US maintains a steep 145 pc tariff on Chinese goods, while India faces a relatively moderate 10 pc baseline tariff following a 90-day suspension of a 26 pc reciprocal duty by Washington.
Government assessments suggest that out of the top 30 product categories imported by the US, India holds a competitive edge in around 10 of them. This opens up a pathway for India to increase its market share, particularly in areas where China's dominance has been challenged by trade restrictions.
An internal analysis by Niti Aayog reveals that while China commands a 25 pc share of US apparel imports, India’s share stands at just 3.8 pc, highlighting significant potential for Indian exporters.
Similarly, in electronics — a sector where the US imports goods worth around $900 billion annually — China holds more than half the share, whereas India contributes a mere 7 pc, underlining room for rapid expansion.
Officials also point to export opportunities in additional sectors like gems and jewellery, articles of iron and steel, and leather products. These categories are gaining traction as the US looks to diversify its sourcing amid ongoing trade tensions with China.
Competitive countries like Vietnam, Bangladesh, and Cambodia have already begun offering attractive duty concessions to gain US market access, making it vital for India to act swiftly.
Ajay Sahai, Director General of the Federation of Indian Export Organisations, noted that there are around 175 tariff lines — including toys, essential oils, confectionery, and footwear — where India is now more cost-competitive than China.
These product categories are increasingly drawing attention from American importers seeking alternatives to Chinese suppliers.
The shift in sourcing patterns is already being observed. According to an Indian apparel exporter, American buyers who previously relied on China for 30-40 pc of their sourcing are now turning to other nations, offering Indian manufacturers a rare opportunity to fill the gap.
The US textile and apparel market alone accounts for nearly $120 billion in imports annually.
This export strategy is also being seen as a stepping stone towards a broader bilateral trade relationship. India and the US are eyeing the conclusion of an early harvest trade agreement by July, which could restore the 26 pc reciprocal tariff and pave the way for a comprehensive bilateral trade agreement.
The first phase of this larger trade pact is expected to be finalised between September and October.
Fast-tracking efforts to exploit these emerging opportunities is critical for India’s ambition to double trade with the US to $500 billion by 2030.
Follow us
