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U.S.-China trade war can make Indian products competitive:CII
Why in the news ?
- CII in its report said, while the US imposing additional 25 per cent duty on imports worth USD 34 billion from China, certain Indian products may become more competitive.
Details
- An analysis by the industry chamber revealed that India should focus on the US market for items in the categories of machinery, electrical equipment, vehicles and transport parts, chemicals, plastics and rubber products.
- India can focus on other numerous goods for expanding its exports to the US and China markets following the hike in duties by both countries on imports from each other.
- Pumps, parts of military aircraft, parts for electrodiagnostic apparatus, passenger vehicles of 1500-3000 cc, valve bodies and parts of taps are exported by India to US. US hiked tariff on these items.
- Exports of these items stood at over USD 50 million in 2017, according to CII, and can be increased with concerted efforts.
- Countries such as Vietnam, Indonesia, Thailand and Malaysia have increased their exports of these products to the US in recent years.
- Products such as intermediate parts for the defence and aerospace sector, vehicles and auto parts, engineering goods, etc. have a higher potential for export.
- Sectors like apparel and textiles, footwear, toys and games and cell phone manufacturing are becoming competitive industries in India and need to be encouraged.
- In the domestic industry, it stated that it is important for India to enhance productivity while adding technology to its domestic production in the identified products.
CII
- The Confederation of Indian Industry (CII) is a non-government, not-for-profit, industry-led and industry-managed organization, playing a proactive role in India's development process
- It was founded in 1895 and the premier business association has over 8,500 members, from the private as well as public sectors, including SMEs and MNCs.
- CII charts change by working closely with Government on policy issues, interfacing with thought leaders, and enhancing efficiency, competitiveness and business opportunities for industry.
Source
The Hindu, Indian Express