India, which is currently facing a whooping 26% tariff from the US, has been pushing hard in recent years to become a manufacturing alternative to China. However now, it seems like it can have that opportunity. 

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India's biggest economic rival China and countries like Vietnam are facing worse tariffs, imposed by US President Donald Trump. 

However, India, along with more than 70 countries has got some relief after Trump announced to pause tariffs on these nations, while continuing to bash China with increasing tariffs, making it 145 per cent. 

Also read: Trump waives off tariffs on THESE 'Chinese' products

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'A significant opportunity'

Praveen Khandelwal, a member of Parliament from Prime Minister Narendra Modi-led Bharatiya Janata Party (BJP), said that the sky-high tax on Chinese imports to America presented "a significant opportunity for India’s trade and industry." 

For the past 10 years, Modi has been aiming for one goal "Make in India", and India has been trying to pitch in China's manufacturing business for a long now, but its factories are not ready. 

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The Indian government also paid incentives to companies producing goods in strategic sectors, budgeting over $26 billion and tried to attract foreign investments as it seeks to reduce India's dependence on Chinese imports. 

Notably, India aimed to create 100 million new manufacturing jobs by 2022. 

Also read: ‘The Trump Effect in action’: Nvidia to manufacture AI chips in US as Trump plans to announce ‘semiconductor tariffs’

'Foxconn in India'

However, India has reached some of its goals. One of them was Foxconn, the Taiwanese contract manufacturer, has started making iPhones for Apple in India, moving some work away from China.

China's economy is five time than of India's size, and is the biggest of the Asian countries to have sped toward growth. 

As India awaits its breakthrough, under PM Modi's leadership, 10 years has not been enough to train the country's growing workforce to match businesses' needs. 

US Treasury Secretary Scott Bessent has noted what insiders are calling a "grand encirclement", a diplomatic and economic coalition with India, Japan, Vietnam and South Korea to isolate Beijing and weaken its grip on global trade. 

“They’ve been good military allies, not perfect economic allies. At the end of the day, we can probably reach an agreement with them. Then we can approach China as a group,” Bessent said.

WATCH | US-China tariff war: White House optimistic about a trade deal with China

According to reports, officials in New Delhi confirmed that they are working on a comprehensive bilateral trade agreement (BTA) with the US, spanning digital trade, goods, labour mobility and more. 

'A package deal'

India is exploring a "package deal" approach, offering sector-specific concessions on textiles, gems, chemicals and agriculture in exchange for US market access and tech collaboration. 

“India has a lot of elbow room for trade deals with developed nations,” India's Commerce Minister Piyush Goyal said. “But we must be cautious about dumping from China.”

Meanwhile, White House insiders said that deals with India are progressing faster than with other countries, thanks in part to shared concerns over China and India’s relatively low exposure to US tariffs.

Also read: Amid ongoing tariff war, China accuses US of cyberattacks, issues arrest warrants for 3 NSA ‘agents’

(With inputs from agencies)