GTRI advises Indian firms to focus on value addition and supply chain transparency instead of rerouting Chinese goods.
In a critical advisory, economic think tank Global Trade Research Initiative (GTRI) has urged Indian exporters to refrain from rerouting goods from high-tariff countries like China to the US. Instead, GTRI emphasised that Indian firms must focus on genuine value addition, supply chain transparency, and strict compliance with US customs rules to tap emerging trade opportunities.
The advisory highlights that misuse of US non-preferential rules of origin (RoO) — where high Chinese content fails the substantial transformation test — could still attract steep US tariffs, regardless of where assembly occurs. With tariffs on Chinese goods reaching up to 245% and most other countries facing just 10%, the trade landscape is shifting rapidly.
GTRI also warned that Chinese manufacturers might dump surplus goods into other markets, distorting prices and hurting domestic industries, with India’s Directorate General of Trade Remedies (DGTR) closely monitoring sensitive sectors like steel, toys, chemicals, and textiles.
The think tank advised Indian firms to rigorously audit supply chains, redesign manufacturing processes to ensure domestic transformation, and maintain detailed documentation. India’s strong pharmaceutical manufacturing base, particularly in APIs, and sectors like machinery, textiles, and medical devices, presents major opportunities to capture redirected global demand.
(Source: PTI)
