Tariff War Opens New Doors for Indian Exporters

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The revival of the U.S.-China trade conflict is opening new opportunities for Indian exporters, as rising American tariffs on Chinese goods prompt U.S. buyers to seek alternative suppliers. With India exporting goods worth USD 86 billion to the U.S. in 2024–25, sectors such as textiles, toys, and electronics are expected to benefit from the shift.

Federation of Indian Export Organisations (FIEO) President S.C. Ralhan said that the tariff escalation could drive higher demand for Indian products in the U.S. market. “We may gain from this escalation,” he noted, highlighting India’s potential to strengthen its presence in key categories where price competitiveness is vital.

The U.S. has imposed a 100% additional tariff on Chinese imports, sharply increasing their prices and making them less attractive to American consumers. Indian exporters see this as a major advantage. “Now this 100% additional tariff on Chinese goods will give us an upper edge,” a textile exporter said, adding that it opens “huge export opportunities for India to America.” Toy exporter Manu Gupta echoed the sentiment, noting that American buyers, including retail chains like Target, have already approached Indian firms for new product lines.

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According to think tank GTRI, the renewed tensions will likely raise global prices of electric vehicles, wind turbines, and semiconductor parts. Despite higher existing tariffs on Indian goods (50%) compared to China’s 30%, Indian exporters remain well positioned to capture market share in high-volume, cost-sensitive sectors.

Experts caution, however, that sustaining these gains will require exporters to boost production capacity, maintain high-quality standards, and comply with U.S. regulations. The U.S. continues to be India’s largest trading partner, with bilateral trade reaching USD 131.84 billion in 2024–25. Ongoing negotiations for a bilateral trade agreement could further cement India’s role as a preferred alternative to China.