Donald Trump
Donald Trump’s huge recipe-ritual tariff has given a huge blow to the global trade. But you must have heard that that needs are the mother of invention and new solutions and innovations arise only under adverse conditions. India can find new opportunities for themselves between this reciperook tariff. According to Trump’s announcement on Wednesday night, from April 9, Indian products will suffer up to 27% tariffs. However, the US has imposed a higher tariff of 54% on China, 46% on Vietnam, 36% on Thailand and 37% on Bangladesh. This has created new opportunities in textile, electronics and machinery sectors for India.
We can overtake these sectors
1. Textile
High tariffs at Chinese and Bangladeshi exports will give Indian textile manufacturers a chance to increase their share in the US market.
2. semiconductor
Taiwan is a leading country in the semiconductor sector. Due to heavy tariffs on Taiwan, India has a chance to take entry into packaging, testing and low -level chip manufacturing. If the supply chain from Taiwan is a little shift, then India will benefit.
3. Machinery, Automobiles and Toys
China and Thailand are leading sectors such as machinery, automobiles and toys. Due to high tariff, the market is also ready to shift from here.
Tariff
What do we need to do?
According to a GTRI report, India can take advantage of this by attracting investment, increasing production and increasing exports to the US. In order to redeem opportunities related to the semiconductor sector, we have to pay attention to infrastructure and policy support. To take full advantage of these opportunities, India will have to increase the Ease of Doing Business. You have to invest in logistics and infrastructure. Also, policy stability has to be maintained. If these conditions are fulfilled, India is in good position in the coming years to become a major manufacturing and export hub.
Will India be able to cash on occasions?
High tariffs have increased the cost for companies dependent on global value chains, which has disrupted India’s capacity to compress global markets. Despite increasing exports, India’s trade deficit is quite high. India accounts for only 1.5 per cent stake in global exports. Now the fear is that Indian exports with new tariffs will become less competition. But if we look overall, the US protectionist tariff system can work as a booster to benefit India from the restructuring of the global supply chain.
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