India is looking to negotiate better offers with Chinese suppliers, since it sails through the commercial war between the United States and China. In a high -level meeting last week, they were told several line ministries to bring together the industry negotiations and calculate the best way to extract better offers with their Chinese suppliers, in the middle of Trump tariff tantrums volatiles.
The strategy focuses on taking advantage of India’s manufacturing capabilities to obtain China cost advantages in the supply of raw materials, their exceptional actions reported, and increase exports to the United States, since India is a relative beneficiary of “discount rates.”
In fiscal year24, the bilateral trade of India-China reached $ 118.4 billion, with India importing $ 101.7 billion in electronic products, machinery and chemicals, while exporting only $ 16.7 billion. This commercial imbalance promotes the impulse of India for discounts or price cuts, partly in sectors affected by US rates.
The ministries have advised to adopt a cautious approach, monitoring the development, collecting the comments of the interested parties, including monitoring the import-export data, before proposing measures such tariffs or safeguards.
“Therefore, there are internal discussions to ensure the trade agreements of Chinese suppliers. In the Aswowerial in excess in the Aswowerial in the excess in the Aswowerial in the excess in the Aswawerial.
For example, toy manufacturers in Guangdong, China, reported orders for shipments to the United States. In the first phase, around 8-10% discounts were offered. But, after the liberation day fees, there have been more cancellations, partly for those scheduled in June.
Talks
The tone, currently, focuses on ensuring low -cost raw materials in sectors where US tariffs press Chinese suppliers. Companies are eager to process with conversations to capitalize on opportunities by proposing price reductions (including discounts), sharing technological gains or transfers to reinforce national manufacturing.
A representative of the painting industry said that in the discussions about titanium dioxide to better ensure, a key raw material from China, despite the limited exposure of the United States.
The rolling band is carefully in Steel, India. The General Directorate of Commercial Remedios recommended a duty of provisional safeguarding of 12 percent on steel imports for 200 days, but its implementation can be delayed as the Ministry of Finance reviews the appeals of the interested parties. The implementation could only happen next.
A government official said that national steel factories, which recently increased prices, run the risk of incurring cheaper import losses that undermine prices by 5-12 percent if the safeguards do not apply.
Industry associations are activities that involve Mines to guarantee affordable raw material supplies. “There is still no formal commitment, but the government is closely evaluating the options,” said a senior official.
Meanwhile, China’s export restrictions in rare earth elements, announced on April 4 in response to US tariffs, could open new paths for India to negotiate access to critical minerals for energy, defense and electronics.
ICICI Securities reports that investors are focusing beyond Q4Fy25, with rates that remodeled commercial dynamics. It is likely that companies that serve to the domestic market of India exceed, while non -ferrous metal companies, linked to global prices, can face challenges. As India navigates this complex panorama, its ability to ensure strategic bargains with China could play their role in global trade.
Posted on April 13, 2025
