Rethinking Tariffs: India's Manufacturing Sector Urged to Boost Competitiveness

Industry leaders including Jamshyd Godrej and A S Bhatia urge Indian companies to shift focus from tariffs to competitiveness, as US implements new duties on imports. With manufacturing contributing less to economic activity, they encourage scaling up and policy support to achieve a 25% GDP share.

Amid growing concerns over new US tariffs, the Confederation of Indian Industry (CII) has called for a shift in focus towards enhancing competitiveness rather than worrying about duty revisions. Industry veteran Jamshyd Godrej emphasized the need for Indian manufacturers to scale up efforts akin to China's strategy.

US President Donald Trump's move to impose equivalent tariffs on American imports from India has raised concerns among experts about potential impacts on Indian exporters. Speaking at a CII event, Godrej criticized the tariff-centric mindset, urging a focus on competitiveness to drive growth.

Echoing similar sentiments, A S Bhatia from the Department for Promotion of Industry and Internal Trade highlighted the government's targets to increase manufacturing share in GDP and reduce regulatory burdens. The production linked incentive scheme has already led to significant investments and job creation, with more expected as investments mature.

(With inputs from agencies.)