Foreseeing Fierce Competition With China In New Markets As We De-Risk From US: EEPC Chairman Pankaj Chadha
While India’s steel exports are shielded from Chinese dumping—thanks to BIS certifications, quality control orders, and import curbs—Chadha warned that China, too, is looking beyond the US.

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India’s engineering exports sector is staring at a period of disruption and recalibration, with the United States’ tariff regime showing no real signs of easing and China turning to third-country markets in search of fresh demand. Speaking to NDTV Profit, Pankaj Chadha, chairman of the Engineering Export Promotion Council (EEPC), said exporters should brace for “fierce competition” from China as both countries now look to expand into overlapping markets.
“The so-called tariff pause only applies to reciprocal tariffs,” Chadha clarified. “The 25% duty on steel and auto components is still active, as is the 10% Liberation Day tariff. As far as engineering is concerned, nothing has changed.”
That unchanged status quo could translate to losses of nearly $4-5 billion for Indian engineering exporters out of the $20 billion currently being shipped to the US. “Unless we get a bilateral trade agreement that offers preferential tariffs, we’re going to take a significant hit,” he said.
While India’s steel exports are shielded from Chinese dumping—thanks to BIS certifications, quality control orders, and import curbs—Chadha warned that China, too, is looking beyond the US. “They’re eyeing the same markets we are—Latin America, Central America, West Africa, and North Africa. And the scale they operate at is massive. Just their exports to the US are more than our entire exports. The question is, Where will all that supply go now?”
Chadha expects intense competition in these new markets, not just from China, but potentially even from Latin American countries in auto and steel components. “This isn’t going to be easy. We’ll have to de-risk from the US, yes, but we’re not the only ones with that strategy.”
The EEPC has also cautioned exporters against being pulled into tariff evasion tactics. With US tariffs high, there’s concern that countries like Thailand or Indonesia might look to route products through India. “The government has warned exporters not to fall for such arrangements. The US will scrutinise rules of origin very closely, especially post-BTA. Re-routing won’t work once that’s in place,” Chadha said.
On the domestic front, relief measures are limited. “There’s only ₹2,250 crore in the Export Promotion Scheme this year. Of that, ₹750 crore could go to the interest equalisation scheme for MSMEs,” he said, adding that exporters shouldn’t count on fiscal incentives to cushion the blow. Instead, the focus should be on de-risking and finding fresh markets—with state-backed support in the form of ECGC credit insurance.
“We’ve requested more export credit cover for those looking at riskier markets. The Commerce Ministry is expected to meet ECGC shortly,” he said.
As for India’s negotiating space in the ongoing BTA talks, Chadha confirmed there’s room to cut tariffs in some areas—but it's not without complications. “Agriculture is always tricky. In auto or whisky, if we offer concessions to the US, the UK and EU will demand the same. We have to walk a very tight rope.”
For now, exporters will need to keep a close eye on how global talks evolve in the 90-day tariff pause window. “It’s still a volatile, dynamic situation,” Chadha said. “We’ll have to wait, watch, and prepare.”