INDIA plans to fill gaps in boycotted
American exports to China arising from the embryonic Sino-US trade war,
reports Bloomberg News.
India has drawn up a list of goods it
can export to China, replacing US exports that have become costlier in
light of the trade dispute between the world's two trading giants,
according to a person with knowledge of the matter.
India has identified more than 40 products, including fresh grapes,
cotton linters, flue-cured tobacco and alloy steel seamless boiler,
where it's in a position of advantage to replace or capture US trade
market share with China, said the source.
Boosting exports will help India reduce a US$63 billion trade deficit it
runs with China, which is also New Delhi's largest commercial partner.
A study found that India is strong in its capability to export about 20
products such as frozen bovine meat and almonds, but it faces
market-access problems China.
Two calls made to Indian commerce ministry weren't immediately answered. China recently started purchasing soybean
from Brazil after slapping a 25 per cent tariff on the oilseed's
shipments from the US as the trade tensions increased.
The Indian study shows at least 80 more items have potential for exports
to China. The government has instructed its departments and industry
bodies to devise strategies to ramp up production in sectors where India
has a clear advantage.
"One of the major impact of the trade war would be that there will be a
lot of re-organisation and reconfiguration of supply chains," said
Amitendu Palit, a senior research fellow at the Institute of South Asian
Studies, National University of Singapore.