India needs to broaden the scope of its current Production-Linked Incentive (PLI) scheme to include sectors like textiles, states a new report by the State Bank of India (SBI). This assumes significance, especially in the wake of the recent announcement of reciprocal tariffs by the United States on several countries, including India, the report adds.

The report also proposes extending the scheme's duration by an additional three years and expanding its coverage to encompass new products. This strategy would not only boost investment in domestic industries but also enhance the competitiveness of Indian products in the international market, it adds.

Exports to the United States present a key area of potential growth for India. Industries such as textiles, apparel, and footwear could see an expanded market share as a result of higher tariffs on Chinese exports, the report opines

However, while United States has imposed a 26 per cent duty on Indian imports, India's tariff on American exports stands at 15 per cent, it points out.  The two nations need to address this disparity by engaging in continued trade negotiations, it adds. India is reportedly considering significantly reducing duties on over $23 billion worth of American goods sold in India as part of a potential trade agreement, which could help alleviate this issue.

Furthermore, United States' reciprocal tariffs on countries like China, Vietnam, Bangladesh, and Indonesia could create advantages for Indian exporters, the report highlights. India can benefit from the anticipated reshaping of global supply chains, opening up new avenues for export growth. The textile sector is identified as one of the industries with significant potential to benefit from these shifts, the report affirms.