(a) whether keeping in view the slowdown in the international market and the ongoing trade war between China and USA the Indian exporters are moving to such markets which have greater potential for Indian export;
(b) if so, the details in this regard; and
(c) the likely impact thereof on Indian export industry?
THE MINISTER OF COMMERCE AND INDUSTRY
(SHRI PIYUSH GOYAL)
(a) to (c): The current trade standoff between the US and China and the slowdown in international market is likely to have its impact on the imports and exports of countries, including India and may bring about a shift in the bilateral trading patterns.
The retaliatory tariffs between US and China have provided a limited window of opportunity for enhancing India’s exports to China and US, particularly in products in which India is also competitive.
India’s exports to both USA and China have increased in 2018-19 as compared to 2017-18. While the exact degree to which this increase can be attributed to the impact of US-China trade standoff is not clearly discernible at this point, the increase can be partly attributed to the fact that certain Indian products have gained in the US market due to higher duties on competing Chinese products and vice-versa for the Chinese market. The year-wise details of exports made to China and USA is given below: -
Country Export Val in Mil. USD
2016-17 2017-18 2018-19 Apr-Sep’ 18 (R) Apr-Sep''19*
CHINA P RP 10,172.41 13,334.42 16,752.80 7,810.73 8,483.20
U S A 42,216.48 47,882.34 52,427.52 26,176.51 26,734.20
* The data for 2019-20 is provisional and subject to change. Source DGCIS
Government has sensitised all the trade promotion bodies to work towards enhancing exports by capitalizing on this opportunity arising from the ongoing tariff standoff between the US and China. The extent to which India can capitalize on the opportunity depends upon a number of factors including, the cost competitiveness of its products as compared to similar product of other competing countries in the Chinese and US market, and any other factors like generation of adequate exportable surpluses, market access etc.
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