Multi-pronged strategy chalked out to limit 50 pc tariff impact

The government has begun reaching out to industry with a four-pronged strategy to limit the damage to manufacturing, exports and jobs. It is weighing four broad ideas: diversifying export markets, modifying the export basket, focusing on boosting domestic demand, and accelerating ease of doing business reforms. While appreciating the broad policy direction, industry executives have pointed out that these do not address the short-term competitiveness gap created by the new tariff regime. The real problem that India will face post these tariffs is competitiveness, as all other Asian countries and competing manufacturing nations face tariffs in the range of 19-30% for products that form a significant portion of India’s exports to the US. The danger is in applying the right solutions to the wrong problem, said one senior executive. Unless India moves quickly to support the hardest-hit exporters, the damage could be permanent, said a report.

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