Trade War Winners: Indian Tableware Exporters Gain Ground
- Quit Plastic
- Apr 10
- 4 min read
Updated: Jun 17
Introduction
The U.S.-China trade war has been one of the most disruptive geopolitical developments in recent decades, sending ripples across the global supply chain. With tariffs soaring, trust shaken, and costs spiralling, global businesses—especially American importers—began reevaluating their sourcing strategies. The unexpected beneficiary? India.
In this blog, we explore how India has emerged as a reliable, cost-effective, and scalable alternative to China for exporters. We'll also examine how Indian businesses are tapping into new markets opened by trade tensions, particularly in sectors like biodegradable products, electronics, textiles, and packaging.
1. The US-China Trade War: What Happened?
The conflict began in 2018 when the U.S. imposed tariffs on billions of dollars' worth of Chinese goods, citing unfair trade practices and intellectual property theft. China retaliated with tariffs. The result was a series of tit-for-tat measures that pushed tariffs on some goods up to 125% or more.
Key impacted sectors:
Electronics
Consumer goods
Plastics
Packaging
Medical equipment
Disposable tableware
As costs rose and uncertainty mounted, American businesses started seeking safer, tariff-free alternatives. In this challenging landscape, Indian businesses demonstrated their resilience and adaptability, stepping in to meet the demand.
2. India's Position Before the Trade War
Before the trade war, India was already seen as a cost-effective producer of textiles, pharmaceuticals, and IT services. However, it often played second fiddle to China in manufacturing due to:
Less developed logistics infrastructure
Bureaucratic hurdles
Limited global branding
That's rapidly changing. With reforms, incentives, and infrastructure upgrades, India is no longer just catching up—it's leapfrogging in several niche categories.
3. Tariffs as a Catalyst: The China Exodus
For U.S. buyers, China went from being the world's factory to a pricing and compliance nightmare almost overnight. The tariff hike forced importers to:
Rethink supply chains
Diversify risk
Shift orders to other countries
India's appeal was immediate:
No U.S. tariffs on most categories
Competitive labour costs
Raw material availability
Government support for export-oriented units EOU)
This led to a surge in inquiries and long-term supply contracts for Indian exporters.
4. Sectors That Benefited in India
Several Indian industries have experienced a significant increase in exports as a result of the trade war. Among them:
Eco-friendly tableware: India's biodegradable sugarcane bagasse products are now preferred over Chinese foam and plastic.
Textiles and garments: U.S. retailers shifted orders to India for cotton apparel.
Engineering goods: Machinery parts, tools, and auto components
Packaging: Especially compostable and recyclable packaging materials
As a manufacturer of eco-friendly bagasse tableware, I've experienced a fivefold increase in inquiries from U.S. importers since the tariffs were implemented.
5. How Indian Exporters Have Responded
To capitalise on this opportunity, Indian businesses have:
Investment in automation and quality control
Adopted international certifications like ISO, BRC, FDA, and SEDEX
Improved their digital presence for global buyers
Partnered with freight forwarders to ensure timely exports
We've adapted by streamlining our bagasse product line, adding QR code traceability, and offering private labelling to meet U.S. retail standards.
6. Policy Boost from the Indian Government
Recognising the strategic window created by the trade war, the Indian government responded with a series of policy measures designed to support and enhance the competitiveness of Indian exporters.
PLI schemes for key sectors
Export subsidies under MEIS and Rodtepp
Single-window clearance systems
Boosting port and logistics infrastructure
These steps have made it easier for SMES and large-scale units to compete globally.
7. U.S. Buyers Speak: Why They Prefer India Now
Importers in the U.S. cite several reasons for their pivot, including the stable political relations between India and the U.S., tariff-free imports, faster response times, and high product quality in eco-products and textiles. This positive feedback underscores India's growing reputation as a preferred sourcing destination.
Stable political relations between India and the U.S.
Tariff-free imports
Faster response times
High product quality in eco-products and textiles
Many American distributors have also noted that Indian exporters are more flexible with minimum order quantities (MOQs) and custom branding.
8. Challenges and How to Overcome Them
India's rise hasn't been without friction. Challenges include:
Port congestion and logistics delays
Currency fluctuations
Raw material supply inconsistency
However, savvy exporters are mitigating these by:
Maintaining a ready stock and buffer inventory
Offering FOB and CIF pricing models
Diversifying the sourcing of agri-waste and other inputs
9. My Take: A Manufacturer's Perspective
For our factory, the U.S.-China trade war was a turning point. A few trial orders turned into full container-load exports within months. Here's what helped:
Rapid sample development
FDA and BRC certification for credibility
Digital catalogues and transparent pricing
Clients informed us that they were actively seeking India-made alternatives to replace their Chinese SKUs due to tariffs and rising freight costs from East Asia.
Conclusion
The U.S.-China trade war has redrawn the global trade map, and India is now firmly on it as a dependable, competitive, and compliant supplier. For Indian exporters, especially those manufacturing sustainable products, this isn't just a passing phase. It's a long-term realignment of global supply chains.
If you're an Indian business owner, the opportunity is real and now. If you're an American importer, the smart money is on building reliable partnerships in India before your competitors do.
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