Indian exports to US to be more competitive after tariff hike: Niti

New Delhi: Indian exports to the US will become more competitive following imposition of higher tariffs by the Trump administration on countries, including China, Canada, and Mexico, NITI Aayog said in a report on Monday. The Aayog in its third edition of 'Trade Watch Quarterly' said there will be significant oppor tunities for India in the US mar kets both in terms of the number of products and volume of the US market.

"India is expected to gain competitiveness in 22 out of the top 30 categories (HS 2 level), representing a market size of USD 2,285.2 billion," the Aayog said.

It further explained that Chi na, Canada, and Mexico are the leading exporters to the US in these categories, therefore higher tariffs on these countries at 30 per cent, 35 per cent, and 25 per cent, respectively, will en hance India's competitiveness.

The thematic focus of this quarter's edition is the evolving US trade and tariff structures and their implications for India's export competitiveness.

"India's relative tariff advantage vis-a-vis major competi tors presents a strategic window to expand market share in the US market, especially in sectors such as pharmaceuticals, textiles, and electrical machinery, among others," the Aayog said, adding that the evolving global trade environment demands agile policymaking to capitalise on new trade alignments.

The government think tank said India's competitiveness will remain unchanged in 6 out of 30 categories, amounting for 32.8 per cent exports to the US and 26 per cent of the US total imports, amounting to USD 26.5 billion.(PTI)