Trump Tariff War / Make in India gets a setback from Trump tariff, will this scheme have to be made again?

Trump Tariff War: US President Donald Trump on April 2 announced reciprocal tariffs on many countries of the world, including India. This decision caused a stir in global trade, and especially the effect was seen in India's stock market and commodity market. After Trump's tariff announcement, the question is arising whether it will affect India's Make in India program and whether it will need to be implemented afresh.

Impact on Make in India schemes

Many major schemes are being run under the Make in India program, one of which is the PLI (Production Linked Incentive) scheme. The objective of the PLI scheme is to encourage Indian manufacturers so that they can compete globally and generate employment opportunities in the country. After Trump's tariff announcement, pressure on this scheme is expected to increase as there may be changes in the global trade conditions.

The State Bank of India (SBI) has suggested in a report that the PLI scheme needs to be implemented more strongly so that the country can avoid being affected by global tensions and trade wars. The report also said that India should expand its existing PLI schemes and extend their duration to three years. This will increase investment in domestic industries and boost global competition.

India's competitiveness and importance of PLI scheme

India will need to increase its production capacity amid this tariff war. While the US has imposed a tariff of 34 percent on China, it has imposed a tariff of 26 percent on India. Despite this, India is in a strong position due to its large workforce and cheap production costs. The SBI report also said that amid the tariff war, there will be an opportunity for India to open markets in sectors like steel, footwear and clothing in the US. But for this India will need to increase its production level, and this can be done through the PLI scheme.

Does India need to change its plans?

Given the tariff war and the global economic situation, India needs to further strengthen its Make in India campaign. The government should focus more on the PLI scheme so that the country's industries get enough incentives to compete in the global market. Moreover, expanding the PLI schemes and extending it to a period of three years can prove beneficial for India's domestic industries.