US-India Tariff Tensions: Construction Equipment Makers Urge PLI Scheme For Components
The Indian Construction Equipment Manufacturers Association had recently communicated its concerns to the government regarding safeguard duties on steel imports.
The Indian Construction Equipment Manufacturers Association has urged the Ministry of Heavy Industries to introduce a production-linked incentive scheme focused on component manufacturing for construction equipment, amid growing concerns over the impact of fresh US tariffs on Indian machinery exports.
Speaking exclusively to NDTV Profit, Deepak Shetty, chief executive officer of JCB India and president-designate of Icema, said the industry is looking for robust government support to weather the evolving trade situation.
"We’ve requested a PLI scheme for components to build long-term competitiveness. Government can help tide over short-term pain through steps like RoDTEP reinstatement and more FTAs," Shetty said.
Reacting to the newly imposed 25% tariffs announced by US President Donald Trump, Shetty said: "Nobody welcomes tariffs. They’re not good."
"During trade talks, our negotiators asked for zero tariffs both ways, which would have created a fair playing field. But we must remember, these are short-term issues. The long-term India story remains strong," he added.
On the impact to JCB's business, Shetty said it's too early to assess the full fallout. "We export around 10,000 machines to the US annually. That’s out of a total 1.4 lakh machines. The broader industry sends about 10% of output to the US. We’re seeing a short pause to reassess. American customers still stand to benefit from our quality products," he said.
Shetty acknowledged growing nervousness among MSME exporters, especially those supplying parts, but remained optimistic. "Domestic demand will likely cushion the impact. Above-normal monsoon, a rural demand uptick, and the government's Budget infrastructure push will support us over the next six months.”
He also said Icema had recently communicated its concerns to the government regarding safeguard duties on steel imports. "Our worry is that if steel imports are restricted, local producers may take undue advantage. Thankfully, this time we haven’t seen a spike. the domestic steel industry has behaved responsibly so far.”
