Indian exporters can take advantage of the increasing trade tension between America and China. America has imposed new and higher tariffs i.e. import duties on many goods coming from China, due to which Chinese products will become expensive in the American market. Because of this, the demand of American companies and buyers may now move towards India instead of China.

Federation of Indian Export Organizations (FIEO) President SC Ralhan said that this is a good opportunity for Indian exporters. He said that India already exports many types of goods to America and now exports can be increased by taking advantage of this situation. Along with this, it will give Indian companies an opportunity to compete more in the American market and create new buyers.

Due to imposition of tariff on Chinese goods by America, demand may increase towards India. In 2024–25, India exported goods worth $86 billion to America. Regarding this, Ralhan, President of Federation of Indian Export Organizations (FIEO), said, “We can benefit from this increasing tension.”

America imposed 100% tariff on China

On Friday (October 10), America had announced the imposition of additional 100% tariff on goods coming from China from November 1. With this the total duty on Chinese imports will reach approximately 130%. This step was taken after Beijing imposed strict controls on the export of rare earths on October 9. Rare earths are essential for America’s defense, electric vehicle and clean energy industries.

Currently the US imposes 50% duty on Indian goods, which includes an additional 25% tariff. SC Ralhan said, “Now we will benefit from 100% additional tariff on Chinese goods. This will open up huge opportunities for India in the American market.”

Another expert said that due to this tariff, Chinese goods will become expensive in the American market and their competition will reduce. Toy exporter Manu Gupta also believes the change will help Indian businesses attract new buyers. He said, “It will be beneficial for us. Higher tariff will provide a level playing field.” He also told that American retail giant Target has approached him for new products.

Think tank GTRI said that the growing trade dispute between the US and China could increase global prices of electric vehicles, wind turbines and semiconductor parts. In addition, the US is heavily dependent on China for electronics, textiles, footwear, white goods and solar panels.

America is India’s largest trading partner for the fourth consecutive year

America remains India’s largest trading partner for the fourth consecutive year in 2024–25. Bilateral trade reached $131.84 billion, which included exports of $86.5 billion. The US accounts for about 18% of India’s total merchandise exports, 6.22% of its imports and 10.73% of its total trade. Currently India and America are negotiating a bilateral trade agreement.

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India-Rus Trade: The trade deal has not yet been signed between India and America. Prior to this deal, Donald Trump’s Commerce Secretary Hovard Lutynik has given a big statement. He said that India will have to treat America properly.

Hovard Lutynik, Commerce Secretary, Donald Trump, also said that we have to improve many countries and also emphasized that such policies should be eliminated which are harming American interests.

‘India needs to open its market’

In an interview given to the News Nation, Lutynik said that India should open its market and should not adopt policies that can harm America. He said, ‘We have many countries that need to improve, such as Switzerland and Brazil. India is also such a country which should take the right steps towards America. Open your markets and stop work that harm America. This is why we have disagreement with these countries.

‘India will have to cooperate’

Lutnik said that business issues may be resolved over time, but if India wants to deliver its products to American customers, then it will have to cooperate with America. He said, ‘These issues will be resolved with time, but it will take time. These countries have to understand that if you want to sell American consumers, then you have to cooperate with the President of America. So there are some issues left. Big countries like India, they will be resolved over time. Lutnik also said, “The economy of 2026 will be the economy of Donald Trump.”

This statement came at a time when a high -level Indian team led by Indian Commerce and Industry Minister Piyush Goyal has visited America. The Ministry of Commerce said on 26 September that this tour had a successful talks to strengthen trade and investment relations between India and the US.

India-china: After a decrease in border tension between India and China, now the central government is considering strengthening the trade relations between the two countries. The policy makers consider it a suitable time to improve India-China economic relations amidst US President Donald Trump’s pressure to reduce tariffs on India.

According to the report of the Indian Express, the government believes that normalizing the business relationship with China will give a clear message to the US and will help in dealing with Trump’s pressure. According to sources, there is a discussion between various departments of the Government of India to give relief in some restrictions on trade and investment with China. These bans were imposed in 2020 after a clash between Indian and Chinese soldiers in the Galwan Valley.

Government can take this big step

Based on the demands from the industrial sector, the government is seriously considering some important proposals. These include steps such as relaxation in visa rules for Chinese citizens, tariffs on Chinese products and reduction in non-tariff barriers and re-allowing some restricted Chinese apps.

Apart from this, it is being planned to release visas for Chinese scholars and to resume air services between India and China. In the field of investment, the Government of India is considering allowing capital flow from Beijing, so that the trade deficit between the two countries can be balanced. According to the current policy, the government’s approval is necessary for investment from countries sharing land border with India.

Strategy to give clear message to America

According to sources, some officials of the Government of India believe that by taking steps towards normalizing trade relations with China, the US can be indicated that India is capable of taking independent decisions about its trade policy. The government wants to show the business restrictions with China and show that it can take policy decisions according to its interests. The Finance Ministry also gave a presentation in favor of relaxing something in trade restrictions at the beginning of this financial year. At the same time, the Ministry of Commerce Ministry is also considering compulsory BIS certification and quality control order (QCOS) on imported products from China.

Decision will be beneficial for small and medium industries

According to a senior official, it has now become necessary to restore business relations, especially in the post -President’s tenure. Long and medium industries had been demanding the removal of trade and non-traditional obstacles for a long time. Apart from this, there is also a discussion on giving some relief in visa rules to allow Chinese technicians and workers working in infrastructure projects to work in India.

China is interested in business restoration

According to sources, China is also keen to re -establish trade relations with India. China has proposed to encourage investment of Chinese companies in the Indian market keeping in mind India’s growing trade deficit. In 2023, the trade deficit between India and China exceeded $ 83 billion. China is mainly exported to primary products from India, while the goods imported from China see a lack of competition in the Indian market, causing this deficit to increase.

Graduate discount will be given slowly

According to a senior official of the Government of India, business restrictions with China may be gradually exempted, allowing Chinese companies to invest in India. However, the government will ensure that Chinese companies participate only in partnership with Indian companies and China’s stake in those projects was minority. This will encourage Chinese investment in India in a controlled manner, which will benefit the Indian market and companies.