India trade deficit with china reach to a record of $ 999.2 billion. The US imposed tariffs on china could have influenced India growing trade deficit with China. As India trade deficit with china reach up to almost $100 billion and this could more than that.
With the US tariffs on china making Chinese goods more expensive in the American market, the Chinese exporters have been looking for alternative buyers and India is the prime candidate As a fast growing economy with a massive consumers and increasing demand for electronic, machinery and industrial materials.
India could imposed tariffs on Chinese goods to balance this trade deficit?
As India did in the past they imposed upto 30℅tariifs on some steels imports from china and Vietnam as well. India doesn’t have the same flexibility to impose high tariffs like US did the recent on Chinese goods. The US had the economic cushion to absorb higher prices when the US President Donald Trump imposed steep tariffs on china India doesn’t enjoy the same, with a large portion of its population still living in below poverty line. Chinese goods dominate key sector that directly affect the Indian middle class and lower income groups.
Smartphones and Laptops: Over 70% of smartphones sold in India are either made in or sourced from China. Tariffs would mean immediate price hikes in essential devices.
Electronics & Appliances: TVs, refrigerators, and other gadgets rely on Chinese components.
Pharma Raw Materials: Around 65% of active pharmaceutical ingredients (APIs) used by Indian drug makers come from China.