Posted by NewAdmin on 2025-04-10 08:44:09 |
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As the trade war between the United States and China intensifies, India is stepping up its efforts to protect its domestic market from a potential influx of cheap Chinese goods. With US President Donald Trump raising tariffs on Chinese imports to 125 percent, there are growing concerns among Indian policymakers that China might try to redirect its export surplus to countries like India to circumvent the tariff barriers. In response, the Indian government is exploring a comprehensive strategy to curb any attempts of dumping, particularly by China.
One of the key elements of this strategy is the strict enforcement of the Quality Control Order (QCO) for imports, particularly targeting Chinese goods. This mechanism aims to ensure that only products meeting specified Indian standards are allowed into the country, thereby limiting the entry of sub-standard and cheap goods. To further strengthen the oversight, the government has formed an inter-ministerial group tasked with monitoring the situation and taking swift action when necessary to shield domestic industries from unfair trade practices.
The urgency of the matter has increased following Trump’s recent announcement of a 90-day pause on higher tariffs for over 75 countries, which initially boosted market sentiment globally. However, China was excluded from this tariff reprieve, and instead faced an escalation in trade restrictions. This has heightened the risk of China seeking alternative export destinations, with India being a likely target due to its large market size and ongoing trade engagements.
Simultaneously, India is fast-tracking discussions with the US for a partial trade agreement that could be finalized within the 90-day window. The agreement is expected to focus on essential and non-sensitive products and could include tariff reductions on selected US imports. This potential deal reflects India’s attempt to balance its trade policy by strengthening ties with Washington while preparing safeguards against possible Chinese economic retaliation.