India identifies goods to replace US exports to China

NEW DELHI: India has drawn a list of goods it can export to China, replacing United States exports that have become costlier in light of the trade spat between the world’s two biggest economies, according to a person familiar.

The South Asian nation has identified more than 40 products, including fresh grapes, cotton linters, flue-cured tobacco and alloy steel seamless boiler, where it’s in a position of advantage to replace or capture US trade market share with China, the person said asking not to be identified as talks are internal.

Boosting exports will help India reduce a US$63 billion (RM258 billion) trade deficit it runs with China, which is also New Delhi’s largest commercial partner.

A study found that India is strong in its capability to export about 20 products, such as frozen bovine meat and almonds, but it faces market-access issues in China.

Two calls made to India commerce ministry spokesman’s phone weren’t answered.

China recently started purchasing soyabean from Brazil after slapping a 25 per cent tariff on the oilseed’s shipments from the US as the trade tensions between the two nations intensified.

Meetings between Chinese and US officials last week made little headway, setting the stage for the US to push ahead with the next round of tariffs on up to US$200 billion worth of Chinese goods.

The Indian study shows at least 80 more items have potential for exports to China.

The government has instructed its departments and industry bodies to work out strategies to ramp up production in sectors where India has a clear advantage.