It said that the two bills introduced by the US Senate- Neither Permanent Nor Normal Trade Relations Act (PNTR Act) and the Axing Non-Market Tariff Evasion (ANTE) Act create potential for growth in local industries as companies look to move production away from China.
“As US companies reduce their reliance on China, India’s expanding manufacturing sector, especially in electronics, textiles, and other industries, could attract more investment,” said GTRI founder Ajay Srivastava.
The PNTR Act seeks to phase out China’s favorable trade status, while the ANTE Act targets non-market economies like China and Russia with tougher measures.
The ANTE Act, in particular, offers India a chance to grow as American companies look to move production away from non-market economies like China, he added.
In this context, he said, India should reconsider its proposals to invite Chinese firms and investment aimed at boosting exports as the higher tariffs on Chinese products present an opportunity for India to strengthen its manufacturing sector.The GTRI suggested to the government that India should actively work to attract investment from multinational companies seeking alternatives to China.
It will be essential to boost domestic production capabilities, especially in electronics, machinery, textiles, and solar panel manufacturing, to fill the gap left by reduced Chinese imports to the US.