China-plus-one remains relevant; India’s competitiveness will go up as reforms build up: CEA

Subscribe to enjoy similar stories. NEW DELHI : Despite Indian exports attracting higher tariffs in the US market than Chinese shipments, the China-plus-one strategy remains relevant for multinational firms, chief economic adviser V. Anantha Nageswaran said in an interview.

However, he added that India will have to work harder to take advantage of the opportunity. Nageswaran said removal of the tariffs will make that choice easier for businesses looking at a supply chain revamp. “These are, however, decisions taken by businesses with a longer time horizon of a decade or two or three, and the tariffs may not last that longer.

From that perspective, the China-plus-one framework still remains very relevant for global business," said Nageswaran. India’s exports to the US are currently subject to steep tariffs of 50% on most goods, following a series of actions by the Trump administration in 2025. Initially, reciprocal tariffs of 25% were applied to Indian imports, effective from 6 August, and an additional 25% penal tariff was later imposed for buying Russian oil, taking effect from 27 August.

A wide range of Indian products—including labour-intensive goods such as textiles, gems and jewellery, leather, marine products, chemicals and engineering goods—face the highest tariff imposed on any major trading partner, excluding Brazil, which is facing similar tariffs. However, certain sectors such as pharmaceuticals, electronic goods and energy products remain exempt from these duties. In contrast, Chinese exports face a 30% US tariff under a truce framework reached in late 2025.