Overview

• Chinese exporters hit by 145% US tariffs are contracting Indian manufacturers to supply goods to American customers under commission-based agreements.
• At the Canton Fair in Guangzhou, Indian firms report increased inquiries in sectors like home textiles, engineering goods, electronics, and pet clothing.
• American companies with operations in China are also approaching Indian suppliers directly due to high tariffs on Chinese exports to the US.
• India is pursuing a bilateral trade deal with the US to avoid a planned tariff increase on its exports from 10% to 26% in July.
• Capacity constraints and restrictions on Chinese investment limit India's ability to fully capitalize on the surge in redirected export orders.