**India**: India positions itself as an alternative manufacturing hub to China during escalating US-China trade tensions. Accelerating tariff talks with the US, India seeks manufacturing growth, trade diversification, and safeguards against import dumping, while preparing for bilateral talks in May 2025.
India is positioning itself as a significant alternative manufacturing hub amid escalating trade tensions between the United States and China, according to reports from CNN-News18. As tariff negotiations between India and the US accelerate, India is seeking to leverage the ongoing US-China discord to enhance its manufacturing sector and broaden trade relations with America.
The discussions, currently underway virtually, are set to progress into face-to-face bilateral trade talks scheduled for May 2025. Both nations have agreed to fast-track these negotiations, with India signalling a refusal to engage under duress, stating that it “will not negotiate with a gun to its head.” While India is prepared to make some concessions, it aims to maximise its broader interests in global markets, including the United States.
Indian officials have indicated intentions to scale up domestic production, notably of Apple mobile products, and have expressed willingness to manufacture certain goods presently produced in China for major American brands. This move highlights India’s ambition to serve as a viable manufacturing alternative to China for key US companies.
In addition to manufacturing goals, the Indian government is seeking concessions on auto parts during the tariff talks. It is also exploring ways to increase oil imports from the United States, particularly in light of America’s concerns regarding large quantities of oil currently being sourced from Russia.
Another concern addressed in the negotiations is the potential for countries such as China and Vietnam, which are confronting high tariffs in other regions, to dump their goods into the Indian market. To counter such risks, India has established a council tasked with monitoring imports closely to protect domestic industries.
Government sources have emphasised that India is committed to safeguarding its own economic interests without exploiting tariff impositions faced by other countries. “We will look beyond some of the traditional and conventional markets, engage with new products, and ensure that the corporate sector is given incentives so that they come up with competitive products,” an official told CNN-News18.
The Indian government remains optimistic that the country will be shielded from adverse tariff impacts through careful policy and strategic trade engagements. The ongoing negotiations and policy adjustments underscore India’s efforts to capitalise on shifting global trade dynamics amid the tensions between the US and China.
Source: Noah Wire Services
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