Lower import tariffs on inputs, other incentives sought

THE BUDGET COULD undertake adjustments of taxes and unveil incentives for the industry to take advantage of the opportunity that could emerge if Trump administration's moves escalate trade tensions globally, according to experts.

- MUKESH JAGOTA

For several months, Donald Trump has been open about increasing tariffs on imports from everywhere to 10%, and on Chinese imports to 60%. In addition to tariffs, the US has put curbs to block access to advanced technologies and raw materials to China. China, too, has retaliated with curbs on exports of critical minerals used in electric vehicle batteries and technologies, hurting not just the US, but others as well.

In the big power fight that is expected in the days ahead, India will have to be building up fresh capacities in the tech technology and capital-intensive sectors locally by massive doses of local and foreign direct investment (FDI) to get ready for the situation, and the Budget announcements can pave the way for it, economist at Deloitte Rumki Majumdar said.