India's Exports Thrive Despite Trade Challenges with U.S.

India's trade with the U.S. has shown significant growth despite the loss of GSP status. The country has excelled in sectors like footwear, minerals, and chemicals, positioning itself as a strong competitor to China. India benefits from global supply chain shifts, showcasing resilience and strategic advantage.

Despite the revocation of its Generalized System of Preferences (GSP) status during the Trump administration, India's trade with the United States has shown remarkable resilience and growth. A recent report by the State Bank of India highlights this upward trend, noting India's increased exports in sectors where it holds a comparative advantage over key competitors, such as China.

The report emphasizes notable growth in exports of footwear, minerals, chemicals, and machinery, underscoring India's deeper integration into global value chains. It reveals that from 2017 to 2021, India strengthened its position with a Revealed Comparative Advantage (RCA) in metals, minerals, chemicals, footwear, textiles, and clothing, sectors where RCA values consistently surpassed 1.

Furthermore, with global supply chain relocations underway and the potential reemergence of a Trump presidency, India's role in pharmaceuticals, electronics, and textiles could see further gains. A detailed analysis of India's iron and steel exports to the U.S. between the fiscal years 2020 and 2021 demonstrated a 44.7% surge, harsh tariffs notwithstanding, underscoring India's robust export sector and trade surplus.

(With inputs from agencies.)