Khan sir explains why India lacks tariff power over US, China, what is its alternative for Chinese import

Faizal khan... the name strikes nothing. Khan Sir, everybody knows the personality. This is not just a name but a whole brand which has expanded over the last many years. Khan Sir is a famous educator who has a specialised teaching technique which resonates with lakhs of Indian students as he teaches in bilingual-Hindi and English in an understandable and interesting method. Recently, Khan sir appeared in an episode of famous social media influencer Raj Shamani’s podcast. He explained several factors regarding why India does not wield the same power to put more tariff as China and the US. He emphasised the fact that the bigger nations have strategies and economic power which they use against their enemies or potential threats to maintain their power over others.  

Why India can’t slap excessive tariff on US and China 

Khan sir highlighted that India needs to keep a balance of power while it deals with powerful countries like the US, China and Russia. “India’s industrialisation and economy are such that it cannot put more tariff slaps on other countries like they do. If it put more tariff on the US, it would destroy it from various sides like preventing loans from big organisations like the UN and prevent its decision there, EU, contracts from NASA, etc. We need to balance everything.” 

For the unversed, US has put 26% additional tariff on India. 

India’s trade relations with China 

He instead opines that, if possible, India should put more tariff on China as the two countries’ trade balance has been worsening. This is indeed due to trade deficit resulting from excessive imports from China. In the fiscal year 2024-25, the trade deficit reached a record USD 99.2 billion, the main reason for which was an increase in imports of electronic goods, electric batteries, and solar cells. 

He further said India is not able to go completely against China as it still markets China made products here and its businesses profit because of that. To balance this trade deficit and put more restrictions on China, Khan sir advises to import commodities from Vietnam as it makes the exact same products as China. “So, India should buy from Vietnam which is an enemy of China and by buying from Vietnam India should strengthen it. There are some South Asian countries as a replacement of China, and we are more than enough dependent on it.”  

Khan sir on India’s import on essential goods 

Talking about India’s production, Khan sir said that India has a lot of engineers but still looks for other markets for essential commodities like MRI-CT scan machine. He says that MRI and CT scan machines are so expensive and used only for serious medical conditions and even then, hospitals must give import duty on such an essential commodity. “Import duty on such essential items is not practical. This shows that the Indian govt is not encouraging production of such goods which are essential for the country and does not intend to invest much in this.” 

He also explained why opportunities in America for growth production. “America has more entrepreneurial opportunities and the government is also very supportive. Whereas, in India big corporates are ignored as during elections a majority of the public is targeted. India’s private sector does not have those remarkable opportunities like in the US, so people go towards govt jobs here.” 

Meanwhile, India has put an active trade surveillance machinery to prevent increasing imports from US and China as the trade war between them has pushed their exporters to dump their exports to alternative markets like India through Vietnam, Indonesia and Nepal.