Can the trade war be a turning point for India?;Is the country ready?

India saw a potential advantage when the U.S. imposed steep tariffs—up to 145%—on Chinese goods, while offering India and other countries a 90-day reprieve. This aligned with India’s long-standing ambition to become a global manufacturing hub and reduce reliance on Chinese imports, a vision promoted under Prime Minister Narendra Modi’s “Make in India” initiative.

Despite some progress—like Foxconn manufacturing iPhones in Tamil Nadu—India's manufacturing sector still lags, contributing less than 13% to the economy compared to around 25% in East Asian countries. Major hurdles persist: lack of skilled workers, dependence on foreign equipment and materials, high land costs, inconsistent policies, red tape, and a sluggish justice system.

Small manufacturers, such as battery-maker LiKraft and car-seat cover producer AutoKame, rely heavily on imported technology and inputs, often from China or Europe. While infrastructure and power supply have improved under Modi, systemic issues continue to hamper growth and scalability.

Still, with U.S. tariffs pressuring China, India sees a window of opportunity—especially in electronics, auto parts, textiles, and chemicals—to expand its manufacturing footprint globally.