The US reciprocal tariff plans might not damage most export sectors in India as Canada, Mexico and China would face greater tariffs creating alternatives, in keeping with Niti Aayog Programme Director Pravakar Sahoo.
“We’re wanting on the knowledge at a really dis-segregated degree. And these are preliminary outcomes as our report shouldn’t be last. However I can simply provide the overview that we aren’t going to lose. This reciprocal tariff shouldn’t be going to have an effect on India, besides very particular sectors, and actually, there are alternatives to actually seize,” Sahoo mentioned on Friday talking on the sidelines of the discharge of the second version of Niti Aayog’s quarterly commerce watch.
Sahoo mentioned that the three opponents for India within the US market–China, Mexico and Canada–accounted for 50 per cent of American exports and had been saddled with very excessive tariffs.
Whereas Canada and Mexico are to face 25 per cent tariffs within the US, the tariffs on China can be round 20 per cent.
“Should you examine our place and the submit imposition tariffs of opponents.. We’re a lot better off within the submit situation. In six out of prime ten prime merchandise we’ll profit,” Sahoo mentioned.
Talking on the occasion, Niti Aayog member Arvind Virmani mentioned that after commerce tensions erupted between US and China in 2017, 5 international locations gained from that – Taiwan, Vietnam, Thailand, Mexico and India. India was fifth amongst the 5 international locations that benefited from China’s loss and the problem was to maneuver the nation as much as the primary place, he mentioned.
Virmani instructed that free commerce agreements with these international locations with giant shares of producing, that are sources of FDI and that are the headquarters of MNCs can be useful for India as they’ll act as lead anchor traders.
“The highest international locations on this context are the US, EU, Japan, UK and S Korea,” he mentioned.
When requested that the scenario had modified now with not simply China, however many others akin to India prone to be hit by US tariffs, Virmani mentioned that one have to be focussed on the alternatives whereas coping with the remainder.
The US is scheduled to impose reciprocal tariffs on international locations with excessive tariffs on April 2, however India, which is negotiating a Bilateral Commerce Settlement with the nation, hopes to keep away from them.