India should target specific goods for export to the US market, particularly in machinery, electrical equipment, and automotive sectors, following the recent tariff hikes between the US and China. There is significant potential to increase exports of certain items such as defense parts and vehicles, and India is encouraged to enhance domestic productivity and technology. Additionally, addressing non-tariff barriers can improve foreign direct investment from the US, while compliance with new EU traceability norms poses challenges for Indian exporters of wooden goods.

1. Learning Guide For US Trading Company
An analysisbythe industrychamberrevealedthatIndiashouldfocusonthe UStrading company for
itemsinthe categoriesof machinery,electrical equipment,vehiclesandtransportparts,chemicals,
plasticsandrubberproducts.
"Indiacan focuson numerousgoodsforexpandingitsexportstothe US and Chinamarketsfollowingthe
hike indutiesbybothcountriesonimportsfromeachother. Top exportsfromIndiato US trading
company whichare coveredinthe listof itemsforwhichtariffshave beenhikedincludepumps,partsof
militaryaircraft,partsfor electro diagnosticapparatus,passengervehiclesof 1500-3000 cc, valve bodies
and parts of taps,said the chamber. Exportsof these itemsstoodatoverUSD 50 millionin2017,
accordingto CII,and can be increasedwithconcertedefforts.
Basedon India'scurrent
exportstothe US trading
company inthese
categories,products
such as intermediate
parts forthe defence and
aerospace sector,
vehiclesandautoparts,
engineeringgoods,etc.
have a higherpotential forexport,itsaid. Sectorslike apparelandtextiles,footwear,toysandgames
and cell phone manufacturingare becomingcompetitive industriesinIndiaandneedtobe encouraged.
The chamber suggestedthatthe trade dialogue withthe USshouldbe strategisedtakingintoaccount
India'scompetitiveadvantage inthese products.

2. Moreover,foreigndirectinvestmentsfromthe USshouldbe encouragedbyboostingconfidence of US
firmsinIndia'sbusinessclimate,addingthatthismightnecessitate addressingtheirconcernsregarding
non-tariff barriersinIndiaforbetterlongtermoutcomes.
In the domesticindustry,itstatedthatitisimportantforIndiato enhance productivitywhileadding
technologytoitsdomesticproductioninthe identifiedproducts.
CII examined818 productlines where the UStradingcompany has raisedtariffsforimportsfromChina.
Between2012 and 2017, China'sexportstothe US have movedupthe value chainwithaccelerated
growthin high-technologyitemssuchastelecommunicationsequipment,automotive,cell phones,etc.
Indianexportersof woodenhandicrafts andotherwoodgoodsface stricttraceabilitynormsinthe
EuropeanUnionbeginningnextyear,whichcoulddenttheirtrade.The normsrequire disclosureof the
source of timbertodiscourage illegalloggingglobally. Overthe pasttwomonths,at least80% of buyers
inthe EU, Australiaandthe US have askedforcertificatesdeclaringthe source of the woodusedin
handicraftsandif any species asendangeredwhileprocuringit,exporterssaid.