Can China Be a New Market for Indian Exporters?
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Synopsis
As India seeks to expand its market horizons amidst tariff challenges, the CBIC Chairman, Sanjay Kumar Agarwal, suggests that the Chinese market could be a viable opportunity for Indian exporters. With strategic planning and a focus on competitiveness, India could offset recent losses due to high US tariffs.
Key Takeaways
- China could be a viable market for Indian exporters.
- Competitiveness is key to entering new markets.
- GST rationalization may enhance export potential.
- High US tariffs necessitate exploring alternatives.
- India is in trade discussions with multiple countries.
New Delhi, Sep 10 (NationPress) As India intensifies its efforts to seek out new markets amidst geopolitical challenges and tariff disputes, the Chairman of the Central Board of Indirect Taxes and Customs (CBIC), Sanjay Kumar Agarwal, has asserted that Indian exporters can certainly target the Chinese market. This strategic move could potentially mitigate the impacts of the hefty 50 percent tariffs imposed by the US.
In an extensive discussion with IANS in his office located in the national capital, Agarwal highlighted that China could emerge as a viable market for Indian goods, provided that exporters can maintain competitiveness.
“The feasibility of exporting to China largely depends on the specific products being offered. Exporters have the opportunity to tap into new markets, with China being a prime candidate,” noted the CBIC Chairman.
He further emphasized that if exporters assess their competitiveness for the Chinese market, “they can certainly establish a presence there.”
Currently, India grapples with a 50 percent tariff on various goods entering the US market, a situation that excludes pharmaceuticals, certain electronics, and semiconductors. The nation is actively engaged in trade discussions with a minimum of a dozen countries.
Agarwal pointed out, “There is always an opportunity to explore new markets and regions in order to recover losses incurred due to tariffs.”
In light of the recent GST Council's decision to revise the tax structure to a two-slab rate of 5 percent and 18 percent, alongside a new 40 percent GST on 'sin goods' effective September 22, the CBIC Chairman remarked to IANS that “the rationalization of GST will aid in mitigating the impact of US tariffs. It could lead to increased domestic consumption, the opening of new markets, reduced logistics costs, and enhanced competitiveness for our exports.”
Lower operational costs for exporters will also aid in maintaining their competitiveness in Europe, he added.
This week, China's Ambassador to India, Xu Feihong, asserted that both India and China should “strongly oppose” all forms of tariff and trade conflicts and support a multilateral trading framework.
Regarding Trump's 50 percent tariff on India, Xu remarked that the US has long benefited from free trade but is now utilizing tariffs as a tool to impose unreasonable demands.
Describing the elevated tariff rates as “unfair and unreasonable,” he affirmed that China stands firmly against such measures.
In a compelling speech at the Chinese Embassy in New Delhi, Ambassador Xu emphasized the broader responsibilities of both nations, stating: “China is prepared to collaborate with Global South nations, including India, to promote an accurate understanding of World War II history, advocate for genuine multilateralism, and firmly resist hegemony and power politics.”
During the period from April to July 2025-26, India's exports rose by 19.97 percent to $5.75 billion, while imports climbed by 13.06 percent to $40.65 billion. In the fiscal year 2024-25, India's exports totaled $14.25 billion, compared to imports of $113.5 billion.
Point of View
This development highlights India's proactive approach to navigating complex global trade dynamics. The emphasis on exploring new markets not only reinforces India's resilience but also showcases its commitment to fostering competitive trade relationships, particularly with China. This strategy could significantly boost India's economy in the face of external tariff pressures.
NationPress
10/09/2025
Frequently Asked Questions
Why is China considered a new market for Indian exporters?
China is seen as a potential market due to its vast consumer base, and with India's current challenges posed by high US tariffs, exploring China could help Indian exporters offset losses.
What role does GST play in enhancing export competitiveness?
The recent GST rationalization to a two-slab rate aims to reduce operational costs for exporters, thereby making Indian goods more competitive in international markets, including China.
How do tariffs affect Indian exports?
High tariffs, particularly from the US, can significantly impact Indian exporters by raising costs and reducing competitiveness, prompting the need to seek alternative markets like China.
What is the current trade situation between India and China?
India is actively looking to strengthen trade ties with China, especially as both nations recognize the need to oppose unilateral tariffs and trade wars.
What are the implications of the US tariffs on Indian exports?
The US tariffs create a challenging environment for Indian exporters, necessitating the exploration of new markets to sustain growth and profitability.
