American sourcing firms and exporters in China are approaching Indian companies to supply goods to the US as high tariffs imposed by Washington are making it difficult for them to ship directly to America, apex exporters’ body FIEO said on Monday.
Illustration: Uttam Ghosh/Rediff
The US has imposed 145 per cent tariffs on Chinese goods entering the American market. For India, the duty is just 10 per cent.
Federation of Indian Exporter Organisations (FIEO) Director General Ajay Sahai said US sourcing firms in China are in touch with domestic manufacturers through diplomatic channels to buy goods from India and export to America to bypass the high tariffs.
“We also held an online meeting with a big US firm. Huge export opportunities are there for Indian exporters due to high import duties imposed by the US on China,” he said.
Besides, he said, Chinese manufacturer exporters from various sectors like electronics, hand tools and home appliances are also reaching out to Indian traders.
“Chinese firms are willing to pass on the export orders they receive to Indian firms so that shipments can continue and their business relationships with the US remain intact,” Sahai said, adding that in return, Chinese companies are seeking a commission fee facilitating the orders.
A significant number of firms from the neighbouring country are approaching the domestic exporters with these business prepositions, he added.
Sahai said a lot of these Beijing-based units have approached them at the ongoing Canton Fair in Guangzhou, which is the world’s biggest trade fair.
A Mumbai-based exporter and Technocraft Industries founder chairman SK Saraf said this will be a “great” opportunity for Indian exporters.
“The domestic players should look into increasing their capacities to tap into these opportunities. Going ahead, they can make direct relationships with those US buyers,” Saraf said.
An industry expert said it would not be easy for Chinese companies to come to India as New Delhi has imposed certain restrictions on investments coming from Beijing.
As per a government order, investments coming from countries sharing land borders with India have to mandatorily take approval from the government.
