India eyes US firms exiting China as Trump’s tariffs reshape global trade: Report
New Delhi: India is making a concerted push to lure US companies relocating their manufacturing bases out of China, as steep tariffs imposed by President Donald Trump have made production in the country significantly more expensive, according to a report by The Economic Times.
The government is also working on strategies to help Indian companies tap into the US market more aggressively in the wake of rising global uncertainty.
A recent meeting with industry leaders focused on ways to capitalise on the evolving trade dynamics triggered by the US-China tensions, the report said, citing unnamed sources.
On April 2, Trump imposed a fresh wave of “reciprocal tariffs” targeting key trading partners.
Following a 34% retaliatory tariff from China, the US responded sharply, raising duties on Chinese imports to as much as 145%—and for some products, up to 245%.
Amid this escalating trade war, India is pursuing a bilateral trade agreement with the US to give its exporters a competitive edge.
Industry representatives at the government meeting stressed the need for a clearly laid-out plan to seize this window of opportunity, warning that failure to act decisively could allow Vietnam to emerge as the dominant beneficiary of the shifting global supply chains.
According to the report, the government has shortlisted 10 to 12 sectors where India could carve out a strong advantage.
These include electronics, pharmaceuticals, chemicals, automobiles, toys, air conditioners, and home appliances.
Trump, meanwhile, has temporarily spared items like smartphones and computers from tariffs, though he clarified these were “just moving to a different tariff bucket.”
He also signalled that new duties on imported semiconductors may be introduced later this week.
India sees the disruption in electronics manufacturing as a key opportunity and is aiming to attract supply chains moving out of China in that sector, the report added.
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