The US and China Trade war Golden opportunity for India

The US and China are the top two economies in the world under a trade war. The US has started this due to Trade imbalance between the two countries.

The US is facing a trade deficit due to more import and less export to China. This will be harmful to The US in the long run.

Due to a trade war, the US has imposed a $200 Billion Tariff on China and in return, China has imposed a $60 Billion (Till the date)
Many of you may have a question of how this trade war will be a golden opportunity for India?

There is a gap created in both economies that India can fill by exporting its goods and services.

Let’s understand

1.      The US–

            The US is a big country with people with a high standard of living. Due to a trade war, Chinese goods will be more expensive than earlier. So India has to produce products to concentrate on these markets first.   

Following are goods which India can take advantage. 

The US imposed a tariff on Chinese goods.

·         Meat & Beef —

                        it predicts Meat consumption in the US to be a record high in this year at 222.2 Pounds, i.e. 100.8 Kg per person and the US produce 100K per year and estimated that the US will import 59,000 metric tons in 2018 and will raise in upcoming years 

World Beef exporter countries 

Number	Country	2018	% of the world
1	Brazil	20,25,000	19.33
2	India	19,00,000	18.14
3	Australia	16,10,000	15.37

-          USDA

They estimate it that India will raise their export in upcoming years as India is one of the least consumers of Beef and meat.

If India can able to capture this market in the US, then it can be very profitable to India.

·         Fish and Seafood—

                                         The U.S. imports over 6 billion pounds of seafood valued at more than $21.5 billion in 2017. Imports over 90 present of the seafood the public consumes. India’s shipment of 13, 77,244 MT of seafood earned US$7.08 billion in 2017-18.


The US and South East Asia are significant importers of Indian seafood industry with a share of 32.76% and 31.59% in dollar term. 

*     Egg and dairy

      ·         Vegetables, Fruits and Nuts    
·         Tobacco Products
·         Silk and wools
·         Copper, Nickel, and Aluminium
·         Clocks, Furniture, and matters, etc.


Above are a few examples of goods that India can try to export to the US.

Goods are not the only thing India should focus on, The US Govt. have been forcing US companies to leave China, due to this company having factories in China is moving to other countries. 

India can be a good substitute for those companies as India is closer to China and due to Make in India campaign it’s become easy for companies to run a business.  

If Govt. of India tries to attract those companies, then it can create employment in the county.

2.      China –

              The relations between India and China is declining over the past few years. Tension is rising on the border as well as on the diplomatic level. The bad connection will not help both of the countries. As both countries are still developing, there are various factors in which both countries can help each other, and this trade war can become a starting point for improving their relations.  

China imposed a tariff on the US.

·         Coconuts, Cashew, and Almonds
·         Pineapple, Orange and Mongo
·          Wine and juice
·         Stainless Steel Pipes
Above are a few examples of goods that India can try to export to the US   


Why The US and China should consider India?

1.      Goods are relatively cheap –

                                                Goods manufactured in India can cost less to the US or Chinese customers than other European or developed countries.

India is still a developing country due to this wages in India is low due to this price can be controlled.

If The US or China try to fill the gap created in their market by goods imported from developed nations, then they have to pay more than they can pay to Indian rights.

India will also try to sell at a low price to raise their exports.

2.      Quality of goods is better –

                                            Indian goods may not be able to compete directly with US goods, but they can surely give close competition to Chinese products or slightly better than goods manufactured in other Asian countries.

European or The US goods can have better quality, but for it, the price of those are also high.

3.      India want to export –

                                     If you guys know I had written an article named as India is a domestic economy. In that I have mentioned that India is not concentrated on the exports their goods are utilized mostly in the country.

So India is trying to export, and the US and China are trying to fill up the gap raised by a trade war. So it will be a win-win situation for both countries.

4.      Open new markets –

                                  As India increases its exports, the US and China can increase its export to India. This will create new markets for both of the countries.

5.      Strategically important –

                                         As you know, there is a rising tension between the US and China. India is in a strategic position that can help both countries. US and China can take help of India by improving their relationships, and the first step is a trading relationship. 

It’s not possible for India to capture all the market, but India should try to win at least 40-50% of the total demand.

How can India do this?

1.      Select Goods –

                         India should select goods which they can offer to both nations, and try to manufacture those goods in large quantity.

2.      Keep price competitive –

                                                   India should keep the price of their goods more attractive so that they can counter their European counterparts.

3.      Quality of products –

                                   It’s tough to match the quality of European standards (As they have Morden technology and technique), but India should do their best for improvement of quality.
India should go for quantity more their main aim should be on capturing of the market first.
By doing this not only, India will enjoy profit but also the US and China can get good products at a reasonable price.
India should be quick at making decisions as various countries in the world are also trying to take advantage of this situation.

Conclusion –

                      A trade war is not good for any economy. I am actively opposing this; we can always counter situation on the diplomatic level. Now it has started, so India has an opportunity so I think India should use this. This will help India to increase its Export.