Hyderabad, Aug. 14 -- India has been named in a Tier 1 grouping of countries flagged by the White House over the alleged rerouting of Chinese goods into the American market to dodge higher US tariffs, in a report that could sharpen scrutiny of Indian shipments even as New Delhi and Washington work towards a trade deal.

The report, "The Great Transshipment Scam," released by the White House Office of Trade and Manufacturing Policy, identifies more than 40 countries as part of what it calls a "shadow transshipment network."

India is placed in the top tier, called "Diversified Scale Leaders", along with Canada, the European Union, Israel, Japan, Mexico, South Korea and Taiwan. These are large trading economies where, the report says, the r...