New Delhi: The tariff war between the US and China is benefitting India as its exports to the neighbouring country have increased by about 32 percent to $8.46 billion during the June-November 2018 period, exporters body FIEO said Thursday.
Exports to China had stood at $6.37 billion in June-November 2017.
In June and September 2018, the US announced high customs duties on several Chinese goods. In retaliation, China also raised levies on American goods.
Federation of Indian Export Organisations (FIEO) President Ganesh Kumar Gupta also said that during the period, India's exports to the US grew by 12 percent.
"Exports to China jumped from $6.37 billion in June-November 2017 to $8.46 billion in June-November 2018," Gupta said in a statement.
He said commodities that have exhibited high growth during the period to China include petroleum products, chemicals, cotton yarn, plastic raw material, and marine products.
"While tariff war is not good for the global trade, the same has come as an opportunity for other countries including India. Our exports to China in June-November 2018 went up by 32 percent and to the US by 12 percent in the same period," Gupta said.
If the tariff escalation continues, India has to increase production capabilities to meet the growing demand in both the markets, he added.
Growth in exports to China is beneficial for India as it has huge trade deficit with the neighbouring country.
Trade deficit with China increased to $63.12 billion in 2017-18 from $51.11 billion in 2016-17.
India is taking several steps to promote shipments to China. Recently it has managed to export agricultural goods such as non-basmati rice to China.
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Updated Date: Jan 25, 2019 12:28:56 IST