As supply chains realign, India must avoid shortcuts

• India to benefit from firms looking to shift production lines

- FE BUREAU

LIKE THE ALREADY established global practice of "treaty shopping" to bring down income tax liability, the world is entering the new phase of "tariff shopping," as trade between the two biggest traders US and China is now subject to abnormally high import duties, according to a study. This is forcing buyers to look at alternate production and sourcing bases, it added.

Given the uncertainty surrounding the duration of the US tariffs, most companies are looking for quick wins: setting up assembly lines, contract manufacturing units, or joint ventures that offer substantial transformation without requiring full-scale industrial ecosystems from scratch, the study by GTRI said.