India is the only major Asian country whose export share in the world market has grown since the beginning of the U.S.-China trade war, Bloomberg reported on August 1.
In the fourth quarter of 2017, India’s share of world exports comprised 1.58%. In the first quarter of 2019 it grew to 1.71%. The respective shares of other major Asian economies have fallen during the same period.
According to the Indian Ministry of Commerce, the country’s exports to the U.S. are at the highest point since 2012. Moreover, India's exports to China also surged by 31%.
It is worth noting that India is less dependent on the Chinese economy than other Asian Countries. While South Korean exports were severely affected by the new tariffs, India’s most significant export markets are the U.S. and the UAE, with China at the third place.
According to Bloomberg, India owes its success to the fact that it is not deeply integrated in major international supply chains, protecting its exports from the tensions caused by the trade war. India's central bank Governor Shaktikanta Das cited the same reason as a factor behind the country's outperforming trade:
Earlier this year, the U.S. President Donald Trump decided to remove India’s preferential trade status and cancel special tariffs on $5 billion worth of Indian goods. Indian government responded with imposing higher tariffs on 28 U.S. products.
Despite the successful Q1 2019, India's overall exports contracted by 9.7% in June, which is the worst performance since January 2016.