New Delhi
India’s exporters facing steep US tariffs could find opportunities in China if they remain competitive, Central Board of Indirect Taxes and Customs (CBIC) Chairman Sanjay Kumar Agarwal highlighted.
Agarwal noted that exporters hit by 50 per cent US tariffs — excluding pharmaceuticals, certain electronics, and semiconductors — should look to diversify. “It depends on what items are being exported to China. If exporters are competitive, they can definitely establish a foothold,” he explained. India is already in trade talks with a dozen countries to offset tariff-driven losses.
He added that recent Goods and Services Tax (GST) rationalisation will support exporters. The GST Council revised the tax structure into two slabs of 5 per cent and 18 per cent, while introducing a new 40 per cent rate on sin goods effective September 22. According to Agarwal, lower logistics costs and increased domestic consumption will make Indian goods more competitive in both Asian and European markets.
Meanwhile, China’s Ambassador to India, Xu Feihong, called the US tariff hike “unfair and unreasonable.” He stressed that both India and China should oppose tariff wars and support multilateral trade. Xu also underlined China’s readiness to work with Global South nations, including India, to resist protectionism and strengthen global cooperation.
India’s exports between April and July 2025–26 rose nearly 20 per cent to $5.75 billion, while imports grew 13 per cent to $40.65 billion. In the previous fiscal year, exports reached $14.25 billion compared with imports of $113.5 billion.
