How can India enhance manufacturing and exports amid global tariff changes to create job opportunities

From the perspective of India, growth along with jobs both are of the same importance. Although we may not be an economy led by export, like many East Asian countries, exports remain a decisive growth engine, which brings investments that affect the need, employment and Forex in India. With Trump Tarries remain in play-despite the 90-day rest period on Wednesday-India has an opportunity, especially with the latest tariff of 125 % on China, to increase manufacturing and exports, and thus export rate to gross domestic product.

Cargo exports in India amounted to more than $ 437 billion in 2023-24, which represents about 12 % of GDP. Charging the Upper United States of the country’s tariff on China (125 %) – even when it depends on Vietnam (46 %) and Bangladesh (37 %), compared to India (26 %) – increases India’s capabilities as a source. It can be divided into three useful sectors:

In electricitySmartphones and electronic products, American sources about 26 % of their imports from China, 9 % of Vietnam, and about 7 % of India. Likewise, in machinery and mechanical devices, China represents about 17 % of American imports, while India contributes about 7 %. These two sectors provide great potential to expand the industrial base in India and create work.

India integrates local manufacturing with supply chains and global value, especially in the ASEAN region, can enhance cost efficiency and global competitiveness, while supporting job creation. But competition must be recognized by countries such as Mexico and Brazil, which benefit from low customs tariff rates compared to India.

In Pharma – The United States represents about 54 % of global exports in India, which is valued at more than $ 12 billion annually – there is a strong possibility of more expansion, especially with the current zero tariff. These jobs should be supported in Pharma R&D and manufacturing, with attracting the highest foreign direct investment and JVS to the country. In the case of precious stones and jewelry, expectations are more optimistic about hand -made pieces, thus supporting jobs in this specialized area.

In textiles, clothes, furniture, bedding and plastic – the sectors in which India has great potential to increase exports and generate job opportunities – China is currently maintaining a large export share of the United States, while India is already present within the product groups themselves. These sectors represent opportunities in which India can increase production and employment, and improve competitiveness. However, again, you should remain aware of the competitors. The relatively low tariff compared to the main competitors. Like China, Pakistan, Bangladesh and Vietnam, it can give us a clear advantage. China currently provides about 52 % of relevant fabric and imports, while India contributes about 17 %. India can take advantage of its strengths in the skilled workforce, fabric groups created and attract more foreign direct investment quickly. Heavy employment categories such as games, sports commodities, rubber and leather shoes are areas where India can focus on fast capacity and enhance competitiveness. With a relatively modest export session in these sectors, India has a strong possibility for investments and growth, which is also compatible with national priorities on creating comprehensive and sustainable job opportunities.

Petro products and organic chemicals exports face higher duties. The impact of competing countries in these sectors – especially Canada and Mexico in petroleum – will require a deeper analysis of assessing the effects of the market share in India.

The continuous expansion and growth of manufacturing, including small and medium -sized companies, is necessary to continue creating job opportunities. The implementation of the correct strategies and the benefit of both short -term and long -term opportunities in the target sectors as mentioned above can help enhance a prosperous ecosystem and generate more job opportunities.