Why India’s electronics sector is least at risk from Trump's reciprocal tariff scrutiny
Subscribe to enjoy similar stories. New Delhi: As US president Donald Trump's reciprocal tariff threat loomsfor Indian exports of engineering goods and pharmaceuticals to textiles,the booming electronics goods shipments may be the least at risk. The duty disparity or the gap between import levies is one of the lowestfor electronics among major categories, according to two people aware of the matter, who spoke on the condition of anonymity.
Commerce ministry data shows India's electronics exports to the US face an average tariff of 0.41%, while US shipments under the same category face a duty of 7.64%, resulting in a gap of 7.23%.That's far lower than 13% for diamonds and gold items, and 32% for meat and processed farm products. The US tech giant Apple Inc, which began manufacturing in India in 2017, has been the biggest contributor to India's electronics exports to the US in recent years. “This could influence the US's approach to tariff adjustments on Indian electronic goods," the people said, stressing that any duty hike would also impact American firms.
India's shipments of mobile phones and electronic components to medical devices to the US have surged from about $986.22 million in FY18 to $10.05 billion in FY24, the commerce ministry data showed. These accounted for about 35% of total exports of the industry in the last fiscal. The US market also presents a huge opportunity.
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