India Stands Strong Amid US Electronics Tariff Changes
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Synopsis
India is favorably positioned amidst the US tariff announcements, especially against major competitors like China and Vietnam, thanks to the efforts of its negotiators. The success of a Bilateral Trade Agreement is vital for India’s long-term competitiveness in electronics exports.
Key Takeaways
- India positioned favorably in US tariff context.
- China faces high tariffs up to 79%.
- Bilateral Trade Agreement crucial for long-term success.
- India and US aim to boost bilateral trade to $500 billion.
- Strategic policy initiatives necessary for global competitiveness.
New Delhi, April 3 (NationPress) India has been placed in a favorable position during the initial round of reciprocal tariff announcements by the US, especially when compared to major electronics export rivals such as China, Vietnam, Thailand, and Indonesia. This has been made possible due to the remarkable and persistent efforts of its negotiators and leaders, industry experts noted on Thursday.
While nations like Brazil and Egypt have slightly better tariff results, India’s stance, particularly with China facing combined tariffs reaching as high as 54% to 79% and Vietnam at 44%, creates a significant near-term opportunity for export competitiveness.
“However, the true long-term turning point for India's electronics trade with the US will depend on the successful finalization of a Bilateral Trade Agreement (BTA). This agreement must become the foundation of our trade strategy, providing stable market access, predictable tariffs, and a framework to scale high-value electronics exports,” stated Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association (ICEA), in a conversation with IANS.
As the geopolitical and economic landscape shifts, India needs to act quickly, utilizing trade diplomacy, domestic policy adjustments, and industrial resilience to reduce risks and maintain its competitive advantage in global trade, according to industry leaders.
“Establishing a bilateral trade deal could alleviate pressure, while modifying import tariffs on certain US goods may help address concerns. India could employ a dual-track strategy — balancing negotiations and countermeasures to protect its economic interests,” proposed Ashok Chandak, President of the India Electronics and Semiconductor Association (IESA).
Fortunately, both India and the US are keen to boost bilateral trade to $500 billion, presenting opportunities for a beneficial agreement and a continued interest in discussions regarding the pact.
Both the semiconductor and pharmaceutical sectors are exempt from tariffs, acknowledging their critical role in global supply chains and public health.
Additionally, India’s minimal electronics imports from the US allow for tariff adjustments to keep trade balanced.
Experts assert that India can proactively respond through swift actions, strategic planning, and robust negotiations to mitigate impacts and protect trade interests.
“IESA is dedicated to collaborating closely with the Ministry of Electronics and IT and the Ministry of Commerce and Industry to formulate strategies that minimize risks and place India ahead in global competition,” remarked Chandak.
“As we anticipate potential retaliatory actions from other major economies, our primary focus must remain on transforming this strategic opening into consistent export growth and supply chain integration,” added Mohindroo.
In light of Trump’s tariffs, India’s electronics sector is well-prepared to maintain its competitiveness.
“As global supply chains may realign in response to these policy changes, India has a strategic opportunity to enhance its position within the global electronics ecosystem. To fully leverage this potential, India must pursue strategic policy initiatives to boost its appeal and deepen its integration into global value chains,” noted Prabhu Ram, VP of Industry Research Group at CyberMedia Research (CMR), in an interview with IANS.
