“An eye for an eye leaves the whole world blind.”
— Mahatma Gandhi
📉 The Threat: Trump’s Trade War Tactics
US President Donald Trump has again resorted to economic aggression. A
50% tariff has been imposed on Indian goods entering the US, coupled
with a clear threat:
“If you retaliate, I will strike back and raise
tariffs even further.”
Trump’s message is loud — and intimidating. But it’s also part of a larger Game
Theory strategy that seeks escalation.
India must refuse to play by his rules.
🇮🇳 A Smarter Retaliation: Import Substitution, Not Escalation
Instead of going tit-for-tat, let us retaliate in a way he never expected — and
cannot penalize.
Let us transform this moment into an Atmanirbhar Bharat revolution — not
just a slogan, but a nationwide campaign for
import substitution.
This is not a new idea. I had proposed this strategy 10 years ago to Cabinet
Ministers, Chief Ministers, and trade bodies — urging them to turn engineering
graduates into job creators,
and manufacturers into nation-builders.
🔗 FROMJOB-SEEKERS TO JOB-CREATORS? (15 Sept 2015)
🛠️ Here’s the
Blueprint I Proposed in 2015
1. Make in
India Platform
- Publish a list of 5,000 imported products (with source country, landed cost,
- annual volume).
- Invite 1,000 Indian manufacturers to pick at least 5 items each to prepare
- Detailed Project Reports (DPRs).
- Display all selections publicly to avoid duplication.
2. Role of
Manufacturing Companies
- Submit 5+ bank-approved DPRs.
- Train 100+ fresh engineering graduates per year under a Graduate
- Engineer Training (GET) scheme.
3. Role of
the Government
- Ministry of Commerce: Host
downloadable DPRs on its website.
- Income Tax Department:
- Offer 200% tax deduction for training GETs.
- Treat DPR expenses as CSR.
- Give 10-year tax holiday and GST exemption to GET
Startups.
- State Governments:
- Track
applications via eBiz portal, proactively help clear bottlenecks.
4. Role of
Fresh Engineers
- Get GET certification from employers.
- Download DPRs, attach them with loan applications to banks.
- Apply for all clearances online via eBiz, quoting bank
approval number.
5. Role of
Trade Bodies (CII, FICCI, ASSOCHAM)
- Encourage DPR development.
- Offer mentoring via retired manufacturing professionals in
each state.
🎯 Why This Response is Powerful
✅ Non-escalatory: Does not provoke counter-retaliation under WTO norms.
✅ Job-Creating: Empowers
youth to build MSMEs, not chase jobs.
✅ Nation-Building: Replaces
imported goods with Indian alternatives.
✅ Bankable: Each startup
backed by DPR + GET certificate + bank clearance.
💡 Time for Revival
Prime Minister Modi recently said:
“All Indians should work together to make India the
world’s third-largest economy.”
🔗 Read: PM
Modi's Vision for Make in India (The Hindu, 06 Aug 2025)
This is the moment to walk that talk — to convert trade threats into
transformation.
Let us retaliate — not with tariffs, but with ten
thousand new factories.
Let’s turn “Make in India” into a mass movement of self-reliance and silent
strength.
With regards,
Hemen Parekh
www.HemenParekh.ai | www.IndiaAGI.ai | www.HemenParekh.in
WHITE PAPER :
Import Substitution as Smart Retaliation
A National Strategy for Job-Creating Self-Reliance .........By Hemen Parekh
Executive Summary In response to steep tariff threats from the United States, India must chart a bold yet non-provocative path.
This white paper proposes a transformative strategy — not tit-for-tat tariffs — but a nationwide movement for import substitution that generates jobs, encourages entrepreneurship, and strengthens India's industrial base.
Originally proposed in 2015, this blueprint outlines how India's engineering graduates, manufacturing companies, and government bodies can coordinate to build thousands of new MSMEs and reduce dependence on foreign imports.
1. Context:
Tariffs, Trade Wars, and India’s Dilemma In 2025, U.S. President Donald Trump announced a 50% tariff on Indian goods, coupled with a retaliatory warning: “If you retaliate, I will strike back and raise the tariffs even further.
” This threat represents a classic Game Theory tactic designed to provoke escalation. India must respond, but wisely — not with matching tariffs, but by building long-term industrial capability.
2. Strategic Response:
Import Substitution through MSME Empowerment Instead of a trade war, India can embark on a movement of self-reliance.
The goal is to substitute imported goods with domestically produced alternatives — led by engineering graduates and backed by industry and government.
3. Proposed Mechanism: Roles and Action Plan Make in India Web Portal
• List 5,000 imported products with source country, landed cost, and annual value.
• Invite 1,000 manufacturers to select 5+ items each to prepare Detailed Project Reports (DPRs).
• Publicly display all selections to avoid duplication. Manufacturing Companies • Submit 5+ DPRs backed by banks.
• Train 100+ fresh engineers annually under a Graduate Engineer Training (GET) program. Ministry of Commerce & Finance
• Host free downloads of DPRs.
• Provide 200% tax deductions on training costs.
• Classify DPR expenses as CSR activity.
• Offer 10-year income tax and GST exemption for certified GET startups. Engineering Graduates
• Complete GET training.
• Use DPRs to secure bank loans.
• Apply via eBiz platform using bank approval reference. Industry Bodies (CII, FICCI, ASSOCHAM)
• Promote DPR initiatives.
• Establish mentoring groups of retired executives to support new entrepreneurs. State Governments
• Track local eBiz applications.
• Offer fast-track support and local approvals.
4. Why This Is Desirable and Feasible
This plan doesn’t provoke trade retaliation. It creates jobs, strengthens MSMEs, and promotes technology transfer. It is administratively feasible — requiring executive actions, not legislative overhaul. It is desirable — for national security, employment generation, and industrial growth.
5. Implementation Strategy Start
with the top 100 most valuable imports. Pilot in 3 states with active industry ecosystems. Build a national public dashboard showing 'Import Replacement Progress'.
6. Call to Action
This
proposal aligns with Prime Minister Modi’s vision of making India the world’s
third-largest economy. It is time to act — to retaliate without escalating. We
urge DPIIT, NITI Aayog, and the PMO to take up this model, pilot it, and scale
it for national transformation
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