Indian manufacturers not overly concerned with US tariffs: IT Secretary S Krishnan

Indian electronics and IT sector manufacturers are not overly concerned about the recent hikes in import duty by the United States, Electronics and IT Secretary S Krishnan said on April 7. Although he emphasised that the impact will depend on how the tariff situation plays out ahead

India's largest trading partner, the US, imposed an additional 26% tariff on Indian goods, effective April 9.

Countries like Vietnam are facing a 46% tariff, China 34%, Indonesia 32%, Taiwan 32%, and Thailand 36%. The sector players reportedly believe that Indian industries are better positioned compared to their competitors in the electronics segment.

"We've been in regular consultation with manufacturers in India. That is something that we are speaking to them on an ongoing basis. They are not overly concerned right now, but it also depends on how this whole situation plays out. It's a dynamic situation," he said at a Cert-In event.

It is to be noted that mobile phone is the biggest contributor to India's electronics manufacturing landscape, with Apple and Samsung being the top exporters in the country.

The US decision to impose a steep 26% tariff on Indian exports has set alarm bells ringing across industries. From marketing budgets to manufacturing ambitions. But beyond the initial shock, this move may also mark a pivotal moment in India's evolution as a global economic force — and a test of its soft power diplomacy, Storyboard18 earlier reported.

“Every other country—even a small country like the Dominican Republic of Congo—has received 100% parity. If their tariff into the US was 10%, the US levied 10%. From India’s perspective, we had imposed a 52% tariff on them, and now we’ve received 26% in return. It’s half. So perhaps it’s not all punitive — maybe it’s reflective of India’s new stature in the global order," a marketing industry veteran said.