Mumbai: Exporters believe that a 90 -day cut in mutual tariffs by the US and China is likely to generate both opportunities and challenges for India.
Sources in the federation of Indian export organizations (Fio) said that although such developments are positive for the stability of global trade, they can bring both challenges and opportunities for India.
Lack of tariffs are likely to increase bilateral trade between the US and China in high -value goods such as electronics, machinery and chemicals.
This will increase competition for Indian exporters in countries such as South-East Asia, Africa and Latin America, where recently Indian exporters have got opportunities. Trade tension between the US and China created an opportunity for India to export goods at competitive prices.
However, sources further stated that India has an opportunity to strengthen exports in areas that may remain unaffected by the US-China trade stress, such as pharma, jewelery, engineering goods and IT.
Another exporter said that India would have to monitor the exports from China. Both China and America are the major trading partners of India.
