As global trade competitiveness increases, India should bolster its Production-Linked Incentive (PLI) programs, according to a State Bank of India (SBI) report. This is especially true in light of US President Donald Trump’s announcement of reciprocal tariffs on a number of nations, including India.
According to the report, India has a great chance to profit from the global trade change, particularly now that the United States has increased its tariffs on Chinese goods.
It suggested that the Indian Government broaden the scope of its existing PLI scheme to include important industries including the textile sector. It recommends extending the scheme’s tenure by an additional three years and expanding its coverage to include new products. In addition to increasing investments in homegrown sectors, this would raise the competitiveness of Indian goods on the international market.
Exports to the United States are one of the main areas where India stands to benefit. In industries like textiles, apparel and footwear, India can expand its market share as a result of rising tariffs on Chinese exports.
However, the report also noted that, in contrast to India’s 15 per cent tariff on American exports, the United States has slapped a 26 per cent duty on Indian imports. It asserts that continued trade talks between the two nations are necessary to rectify this imbalance.
India is reportedly prepared to drastically lower duties on more than US $ 23 billion worth of American goods sold in India as part of the trade agreement between the two countries, which may assist to resolve the problem.
Additionally, the report noted that the United States’ reciprocal tariffs on nations such as China, Vietnam, Bangladesh, and Indonesia may provide an advantage to Indian exporters. India might benefit from the anticipated change in global supply networks, creating new avenues for export expansion. Among the industries that potentially benefit from this is the textile sector.
