The US-China trade war has started to take an ugly turn with the latter ‘busting the luxury brand market’. As the Trump-Tariff 2025 has got the world at its knees (almost) with a Universal tariff of 10% on all imports to the US, irrespective of country of origin, is it all bad news? Well, not exactly. Specially for a Country like India, there appears to be a silver lining behind the dark clouds of the current economic upheaval. Let us take a look.
With China suffering a whopping 145% tariff, and a resulting tariff retaliation of 125% on American products, the Indian market can be the ‘next big thing’. While the Indian textile industry is facing a 25% tariff, it is still less than compared of other countries like Bangladesh and Vietnam, with a 37% and 46% tariff respectively. This spells a huge opportunity for the Indian textile industry. The US buyers will see a great alternative in India for ‘budget labor costs’.
The Indian electronic industry is the next to ‘milk from the trade war’. The Trump tariff on China has made the Indian electronic exports 20% cheaper in comparison. This is a major boost for the Indian electronic manufacturing sector.
Next in line is the Indian Agriculture sector that can benefit from the ‘Chinese retaliation tariff’. Now, the Chinese need to find an alternative agricultural market for their demands- this is where India comes into the picture. India can expect a boom in the agricultural export demands to China, hence a major profit in the process.
The trade wars are never pleasant, as they result in a Global slowdown of the world economy. While no country is in a ‘happy place’ currently, India, as a growing economy, needs to be strategic regarding its position in the global market. As for the current plan of action, the ‘handlers’ of the Indian economy should be quick to improve the infrastructure, the ease of conducting business and smooth trade policies.
With smart moves and diplomatic handling of the situation, it will not be surprising to see India walking away with the ‘biggest slice of the cake’.
