India Is Expected To Make Use Of Sino US Trade Frictions To Increase Exports Of Machinery And Textile Products.

India commerce and Industry Minister Piyush Goyal recently said in the house of lords that India is expected to take advantage of the Sino US trade friction opportunities to show its competitive advantage in manufacturing and production, thereby enhancing exports and reducing trade deficits. The potential products include minerals, machinery, machinery and components, electronic machinery and equipment, chemicals, synthetic fibers and textiles.

Minister Goyal pointed out that the increase in Global trade tensions is the proximate cause for India's manufacturing industry to attract more investment in the past 4 years. In the 2018-2019 fiscal year (FY19), China's investment in India's metallurgical, service, renewable energy, electronics and tools and machinery industries (FDI) increased significantly compared with the previous year, of which the metallurgical industry was 16 million 750 thousand US dollars, an increase of 5 times, while the renewable energy and services sector was 25 million 500 thousand US dollars, an increase of 3 times.

As for the US side, the FY19's FDI to India's hardware and software industry is $1 billion 500 million, an increase of 3 times compared with the previous year, and an increase in the FDI of India's metallurgical, educational and energy industries. Although iron and steel products are the bulk of India's exports, the United States has imposed a 25% tariff on steel products in India and other countries, resulting in a sharp decline of 35% in exports of FY19 to the US in India.

Goyal minister said that the government of India has instructed all trade promotion agencies in China to actively grasp the opportunities brought by Sino US trade friction to strengthen exports to the outside world. However, if India wants to increase exports and reduce trade deficits, the key lies in the price competitiveness of products and whether the market entry conditions of India products are superior to those of other countries.