India may become a dumping ground for Chinese products such as Electric Vehicles (EVs), batteries and other new technology items with the US raising tariffs on these imports from Beijing, economic think tank Global Trade Research Initiative (GTRI) said Tuesday.
“The raising of tariff on EVs, batteries and many other new technology items by the US may push China to dump these products in other markers including India. It’s a moment for India’s Directorate General of Trade Remedies to remain vigilant,” it said.
It also said that higher duties on Chinese face masks, syringes and needles, medical gloves and natural graphite presents an export opportunity for India.
“By ramping up production and export of these in-demand products, India could enhance its trade footprint in the US market,” said GTRI cofounder Ajay Srivastava.
However, he said that India may not get any export advantage on remaining products like EVs and semiconductor as the country is a net importer of these products.
China has replaced the US as India’s largest trading partner in FY24 with USD 118.4 billion two-way trade, GTRI has said in its earlier report.
Srivastava said that the US and EU are taking active measures to cut reliance on Beijing and with stagnant exports and rising imports from the country, India may also need a China strategy.
The US has reignited the trade war with China by announcing a series of proposed tariff increases on imports of 14 products as part of its broader strategy under Section 301 of the Trade Act of 1974, to combat what it deems as unfair trade practices by China. This includes issues related to technology transfer, cyber intrusions, and cyber theft.
“With the routine tariff increases that go beyond the WTO commitments, and large subsidy programmes to ramp up local production, the developed countries are in full protectionist mode, and trade policy gives way to the industrial policy in developed countries including the US, EU, Srivastava cautioned.
