India eyes to capitalise on US-China trade war; sounds good in theory, says Russia media
New Delhi, Oct 22: One's loss is another's gain. At a time when the world's two biggest economies have found themselves in the middle of an ugly trade spat, India has sensed an opportunity to capitalise and make economic gains.
According to a report in Times of India, the commerce ministry has reportedly made a list of 180 products that it could export to the US as substitute for Chinese goods worth up to $10 billion that have come under President Donald Trump's huge sanctions. The US has slapped tariffs on Chinese imports worth $200 billion, covering 6,000 items ranging from consumer goods to food products.
According to the ToI report, the products that India has identified include engineering goods to auto components besides chemicals. The ministry has also reportedly asked the trade bodies to go all-out to make use of the opportunity, especially when the trade deficit is growing.
"It could be $2-3 billion or more, depending on how quickly and effectively Indian companies move," the newspaper quoted a source as saying.
Sounds good in theory, says Russian news site
According to a report in Russian state-backed TV network RT, India's move might sound good in theory but in practice, Washington might be reluctant to accept the Indian offer considering the $27 billion deficit that the former had with the latter - its ninth largest goods and services trading partner -- last year.
"With Donald Trump's 'America First' policy dominating business and politics, the US President recently reminded India that it behaves like a "tariff king" and must lower its import tariffs to maintain the "privilege" of trading with the US," RT reported.
India and the US have already been trying to find negotiation in trade since June after the latter brought new steel and aluminium import duties that also hit, among others, New Delhi. India also threatened to hike tariffs on 29 American products worth over $10 billion in August.
Moreover, the recent inking of a defence agreement between India and Russia whereby the former would buy Russia's modern S-400 Triumf air defence system defying Washington's pressure could also put up another obstacle on the way of smooth trade between the two democracies.