The country, they said, will take all measures to check dumping of goods from China as Beijing is slapped with steeper tariffs and work within the World Trade Organization (WTO) framework to prevent the dumping of excess capacity into its markets by countries hit by high US tariffs.
“The government is there to protect domestic industry from any possibility of dumping of goods in such a situation,” said an official.
New Delhi is also exploring measures to protect sensitive sectors like dairy and agriculture amid the trade war.
While the reciprocal tariffs on India are 26%, those on China are 34%. India is also likely to gain from the US-China trade war.
While certain exports such as fisheries could lose market share to Ecuador due to lower reciprocal tariffs on that country, officials said India can export more of the product to the EU.India anticipates a small impact on its pharmaceutical exports due to new US tariffs from the Trump administration. Washington could impose tariffs similar to what is has levied on steel imports.India is negotiating an FTA with the UK where talks are going “very good” and the country has similar requests from other countries including Bahrain and Qatar.
Exports
Work is also underway to provide support to exporters who would be impacted by the US’ tariffs FY25 goods exports growth would be slightly above than previous fiscal but FY26 growth will be higher than 2024-25, said an official.
India’s goods exports in April-February FY25 are $395.63 billion.
While the US has imposed an additional 26% import duty on India, its competitor Vietnam is facing 46% tariff, China 34%, and Indonesia 32%, and Thailand 36%.
Officials also said the commerce department is reaching out to domestic exporters regarding these tariffs.
“Work is progressing to prepare the export promotion mission for extending support measures to exporters,” said the official.
