New Delhi: To counter the global trade competition caused by the US’s reciprocal taxation, the central government should expand the production-linked incentive scheme to other sectors, SBI has urged in a statement.
India has a good opportunity as the global trade pattern has changed.
In particular, the US has imposed high taxes on Chinese products.
Therefore, the central government should expand the current production-linked incentive scheme to key sectors such as textiles, engineering goods, gems and jewellery.
Also, the scheme should be extended for three years and a larger number of products should be included.
This will help domestic industries attract investment and Indian products compete in the global market.
Since the US has imposed high taxes on Chinese products, India can increase its market share in sectors such as textiles, ready-made garments and footwear.
Also, India, which is strong in iron and steel products, can benefit from trade reforms.
Furthermore, while India imposes a 15 percent tariff on American goods, the United States has imposed a 26 percent tariff on Indian goods. Efforts should be made to reduce this during trade negotiations between the two countries.
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