With the US and China reducing their engagement in the area of trade, India could seize the opportunity to increase its presence in the two markets, say trade experts. “Because of their growing disengagement as they slap tariffs on one another, it gives India a platform to engage more with both the countries and increase presence,” said a Delhibased trade analyst. This means investment-led trade with China and more strategic engagement with the US in terms of defence, technology and space, among others. China has already extended the olive branch to India by expressing interest in investing here and addressing the huge trade deficit that India has with it. “India will become a very important player as the two largest economies of the world deny each other market access,” said another trade expert.
Though the consumption profiles of the US and China differ from India, some of their goods could find their way to India, the expert added. Though experts have found a silver lining in the China-US tariff war, engineering exporters are worried about getting caught in the crossfire. “Our stakes are quite high in the unfolding global trade tensions between the US and China. We would not like to be caught in the crossfire,” said EEPC India chairman Ravi Sehgal.
Indian engineering exports to the US, the number one destination for these goods, had gone up by over 47% and to China by 76% between April-February 2017-18, according the EEPC India. Sehgal said rising import tariffs in the wake of US action on steel and aluminium and the complaint filed against India in the WTO with regard to various export promotion schemes would be challenging issues for the exporters. KIRTIKA SUNEJA Stay on top of business news with The Economic Times App. Download i
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