Table of Contents
PLI SCHEME FOR MAKE IN INDIA
- Indian government recently announced new production-linked incentives (PLI) scheme to encourage local production in the country.
- 48,000 crore to boost local electronics manufacturing and create 20 lakh direct and indirect jobs by 2025.
‘MAKE AMERICA GREAT AGAIN’
- Trump has time and again asked American firms to shift their manufacturing to the United States to help create more jobs, a move that resonates with his agenda of ‘Make America Great Again’.
TAXATION FOR COMPANIES NOT RETURNING TO US
- Donald Trump said he could levy new taxes on American companies that move their manufacturing bases from China to any country other than the United States.
WHY NOT INCENTIVE TO MOVE BACK TO US RATHER THAN TAXES?
- Donald Trump has termed taxation as an incentive for companies to return the manufacturing to the United States.
- These…companies have to get on the ball, because they’re going not only to China…You look at where they’re going…They’re going to India and they’re going to Ireland and they’re going all over the place, they make them,” Trump said in the interview. “So, you don’t think you need to do anything in terms of incentives,”
TRUMP’S REMARKS ON APPLE MOVING TO INDIA
- “If they do, you know, we gave Apple a little bit of a break because they’re competing with a company that was a part of a trade deal that we made. So it was a little bit unfair to Apple, but we’re not allowing this anymore”
TRUMP ON GLOBAL SUPPLY CHAINS
- “I said we shouldn’t have supply chains. We should have them all in the United States. We have the companies to do it. And if we don’t, we can do that,”
IS THIS THE RIGHT MOVE???
{PUTTING UP TRADE BARRIERS}
- By January, before the coronavirus spread globally, Trump’s new tariffs had cost American companies $46 billion, according to Commerce Department data.
- U.S. companies facing severe drops in revenues.
- The International Monetary Fund has warned that raising new trade barriers will prolong the worst recession since the 1930s Great Depression.
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