Chinese Firms Turn To Indian Exporters To Meet U.S. Demand

(MENAFN- KNN India) New Delhi, Apr 28 (KNN) Chinese firms are increasingly turning to Indian exporters to fulfill U.S. orders amid escalating tariffs and trade tensions.

The U.S. has imposed steep tariffs on Chinese imports, including a 145% baseline tariff and additional duties on shipments under the de minimis threshold, significantly impacting Chinese exporters.

In response, Chinese companies are seeking Indian partners to maintain their presence in the U.S. market.

The Federation of Indian Export Organisations (FIEO) has identified a $25 billion export opportunity for India, particularly in sectors where China has been a dominant supplier.

These sectors include electronics, textiles, toys, auto components, and furniture. To capitalise on this opportunity, FIEO has proposed a Rs 750 crore marketing scheme over three years to promote Indian exports to the U.S.

Additionally, FIEO advocates for the extension of the five percent Interest Equalisation Scheme (IES) to support exporters.

Indian exporters are already engaging with U.S. buyers, offering competitive pricing and reliable delivery schedules.

However, challenges such as higher tariffs on Indian goods and the need for enhanced infrastructure remain.

The Indian government is considering measures to address these challenges and support exporters in tapping into the U.S. market.

This shift in sourcing reflects broader changes in global supply chains as companies seek alternatives to Chinese suppliers.

While the U.S. remains a significant market for Chinese exports, the evolving trade landscape is prompting companies to explore new partnerships and strategies to mitigate risks and maintain competitiveness.

(KNN Bureau)

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