New Delhi: As India doubles down on exploring new markets amid geo-political uncertainties and tariff tensions, the Central Board of Indirect Taxes and Customs (CBIC) Chairman, Sanjay Kumar Agarwal, has said that domestic exporters can definitely explore the Chinese market, indicating that this move can help offset losses being faced by them due to steep 50 per cent US tariffs.
In a wide-ranging interaction with IANS at his office in the national capital, Agarwal said that China can become our new market if domestic exporters are competitive.
“It depends on what items are being exported to China, and because the exporters can always explore the new markets, China can be one of them,” the CBIC Chairman noted.
He further stated that if exporters find they are competitive in entering the Chinese market, “definitely they can make a foothold there”.
Currently facing 50 per cent US tariffs across industries, excluding pharmaceuticals, certain electronics and semiconductors, the country is currently in trade talks with at least a dozen countries.
According to Agarwal, “there is always a possibility to enter new markets and regions to regain” losses due to tariffs.
As the GST Council last week revised the tax structure to a two-slab rate of 5 per cent and 18 per cent, introducing a new 40 per cent GST rate on ‘sin goods’, effective September 22, the CBIC Chairman told IANS that “GST rationalisation will help tackle the US tariff impact. It may generate increased domestic consumption, new markets, logistic cost reduction, and make our exports more competitive.”
Exporters will have lower costs, and that will help them remain competitive in Europe too, he added.
Earlier this week, China’s Ambassador to India, Xu Feihong, said that India and China should “firmly oppose” any form of tariff and trade wars and uphold the multilateral trading system.
On Trump’s 50 per cent tariff on India, Xu said that the US has long benefited from free trade and is now using tariffs as a weapon to demand exorbitant prices.
Terming the high tariff rate as ‘unfair and unreasonable’, he said that China firmly opposes it.
Emphasising the wider role of both countries while delivering a powerful speech at the Chinese Embassy in New Delhi, Ambassador Xu stated: “China stands ready to work with Global South countries, including India, to promote a correct view of World War II history, practice true multilateralism, and firmly oppose hegemony and power politics.”
During the April-July 2025-26 period, India’s exports went up by 19.97 per cent to $5.75 billion, while imports increased by 13.06 per cent to $40.65 billion.
In 2024-25, India’s exports stood at $14.25 billion, while imports were $113.5 billion.
(IANS)
