Indian Manufacturers Taking US Tariffs in Stride, Says IT Secretary S Krishnan

Top government official  stated on Monday that the electronics and IT sector manufacturers are not "overly" concerned about the recent hikes in import duty by India's largest trading partner,  US . However, it will depend on how the tariff situation is played out ahead. 

 "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," Krishnan told reporters at a Cert-In event. Industry stakeholders believe that Indian companies are secured a good position than their competitors in the electronic sector. Although the United States has enforced an extra 26% import duty on goods from India. The Vietnam is subject to a 46% tariff, while china faces a 34% tariff, Indonesia 32%, Taiwan 32%, and Thailand 36%. 

 Mobile phone is the biggest contributor to India's electronics manufacturing landscape and there is a lot of market opportunities with a growth potential, with Apple and Samsung being the top exporter in the country. iPhones are made in China by the majority, followed by India, while the biggest factory of Samsung is located in Vietnam after India. 

 "However, this remains comparatively lower than tariffs levied on other major Asian manufacturing hubs. As a result, India-based manufacturing still holds a competitive edge -- given that there is already a significant focus on scale, quality, and 'Make in India' incentives," Prajapati said.