Moody Report on India’s Manufacturing: Additional 25 percent tariffs imposed by US President Donald Trump on Indian goods can become a major challenge for India. It can emerge as a significant obstacle in front of India’s self -sufficient mission. US rating agency Moody’s has reported in its forecast that the additional penalty trump imposed on India due to frequent purchases of cheap Russian oil will have a direct impact on the manufacturing competition of the country.

It is worth noting that the announcement of 25 percent tariff on India was announced by the US on 31 July, which has become effective from 7 August. Apart from this, Trump announced 25 percent penalty as an additional fine on August 6, which will be applicable from August 28. However, the routes of possible negotiations between the two countries are still open.

Increased challenge for India

Moody’s said on Friday that India’s ambitious ‘Make in India’ campaign may be affected due to high tariff rates than other Asian countries and the manufacturing sector may be shocked. Its impact will be more visible in particularly high -value electronics sectors.

If the additional tariffs imposed on India are effective due to purchasing oil from Russia, then the self -reliant Bharat Abhiyan, which is aimed at promoting domestic production and reducing foreign dependence, may be adversely affected.

Impact on ‘Make in India’

Under ‘Make in India’, since 2020, the Government of India has been giving exemption and encouragement to promote various sectors. Its positive impact has been seen in the past years. There has been a tremendous boom within the country in drugs and mobile construction, while areas such as textile, semiconductor industry and solar energy are moving relatively slow.

During the financial year 2024-25, India’s trade with the US stood at $ 131.8 billion, which makes it clear that America is a major trade partner of India. India’s exports to the US reached around $ 86.5 billion, which mainly includes textile, electronics, machinery and medicines. Most of these products are part of the incentive schemes given under the PLI scheme of the Government of India.

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Pli scheme: 14,020 crore has been released under the PLI Scheme launched by the Government of India to promote the country’s production and manufacturing sector. These include 10 major sectors in many countries like Electronics, Manufacturing, IT Hardware, Pharmaceuticals, Telecom, Food Processing, Automobiles.

PLI scheme has a big impact on sectors

The scheme was launched in the year 2021 to promote the country’s manufacturing capacity and export, in which 14 sectors were covered. The Ministry of Commerce and Industry said in a statement on Saturday, the PLI scheme has a significant impact in different sectors of the country.

Under this, the manufacture of indigenous goods was encouraged, which leads to more production, more and more people get employment and exports to export. This scheme has attracted investment from the country as well as abroad. Explain that under this scheme, the government is given incentive to those companies, which show well in the manufacture and export of indigenous goods.

Investment of so many crores

It was reported that 764 applications have been approved for 14 sectors under the PLI scheme, including 176 MSME in PLI beneficiaries of sectors like bulk drugs, medical devices, pharma, telecom, white goods, food processing, textiles and drones. As of November 2024, an investment of about Rs 1.61 lakh crore has been made. Due to this, about 14 lakh crore rupees (about 162.8 billion dollars) have been sold. While a target of Rs 15.52 lakh crore was set by 2024-25.

People got employment through scheme

The ministry also informed that due to this scheme, more than 11.5 lakh people have got direct or indirect employment. Under the PLI scheme, companies invested around Rs 20,000 crore in special steel, while an investment target of Rs 27,106 crore was set. This also provided direct employment to 9,000 people.

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