India to gain vis-a-vis competitors from high tariffs imposed by US: NITI Aayog

India stands to gain in sectors with high tariff gaps vis-a-vis competing nations like China, Canada and Mexico if the existing tariffs imposed by the US, as on July 10, on India remain unchanged, NITI Aayog said.

The Aayog's analysis, which is part of its Trade Watch Quarterly report for October-December quarter of 2024-25 released on Monday, comes at a time when India is in the final leg of firming up a trade deal with the US.

As per the report, the sectors where India stands to gain include minerals and fuels, apparel, electronics, plastics, furniture and sea-food. The Aayog has pegged the market size for these products at $1265 billion.

The report said India is expected to gain competitiveness in 22 out of top 30 products in the HS 2 categories, representing a market size of $2285.2 billion and in 78 products out of top 100 in HS 4 categories.

"Significant opportunity for India in US markets both in terms of the number of products and volume of the US market," the Aayog said in its report.

Despite no tariff edge, India remains strong in pharmaceuticals and precious stones, which are key exports to the US with a $766.7 billion market.

"In nuclear reactors, vehicles, aluminium and iron and steel, a 25% tariff on Canada and Mexico has narrowed the tariff gap, opening opportunities for India in the $557.5 billion market," it added.

NITI Aayog's analysis shows India's competitiveness will remain unchanged in 6 out of 30 categories.

"For six product categories at HS 2 level, India faces a higher average tariff (between 1-3%), which can be negotiated with the US," it suggested.