The State Bank of India (SBI) advises the government to increase Production-Linked Incentive (PLI) schemes because India finds itself at a critical point in global trade transformations. The new trade opportunities emerged after former U.S. President Donald Trump implemented reciprocal tariffs against multiple nations including India.
The report from SBI demonstrates how India can benefit from the increasing U.S. tariffs that target Chinese exports. The market expansion creates new possibilities for Indian export products particularly in textile and apparel and footwear and iron and steel industries. The report advises the PLI scheme to include additional products and have a three-year extension to draw more domestic investment and boost India’s position in the global market.
The report indicates that U.S. tariffs on Indian goods amount to 26% but India only imposes 15% tariffs on American products. Trade negotiations to balance tariffs would create additional export possibilities for India.
India will obtain a greater portion of the global market because of reciprocal tariffs that affect Vietnam, Bangladesh and Indonesia if it takes immediate and decisive action.
