New Delhi (PTI) April 7 (PTI) manufacturers of electronics and IT sectors are not concerned about India’s largest trading partner’s recent hike on import tax, a senior government official said on Monday.
However, the impact will depend on how the tariff situation works.
“We have been in regular negotiations with manufacturers in India. This is something we are constantly talking to them. They are not overly concerned at the moment, but it also depends on how the situation is performed. It is a dynamic situation.”
On April 3, the United States imposed a 26% tariff on Indian goods, starting from April 9.
The industry participants believe that the Indian industry is in a better position than its competitors in the electronics sector.
Although the U.S. imposes another 26% import tax in India, its rival Vietnam faces 46% tariffs, China 34%, Indonesia 32%, Taiwan 32%, Thailand and Thailand 36%.
Mobile phones are the biggest contributors to the electronic manufacturing landscape in India, with Apple and Samsung being the country’s top exporters.
Most iPhones are made in China, followed by India, while Samsung has the largest factory in Vietnam.
Commenting on the possible impact of these tariffs, Paritosh Prajapati, CEO of Telecom Gear Maker GX Group, said that the 26% tariff would create significant cost barriers to the U.S. for India’s hardware exports.
“However, this is still below tariffs on other major manufacturing hubs in Asia. As a result, Indian manufacturing still has a competitive advantage – given that there are already important concerns about scale, quality and “quality and “manufacturing” incentives in India. ”
Mahendra Nahata, managing director of HFCL, said U.S. tariffs should be considered as catalysts, not restrictions.
“While tariffs challenge cost structures, they also prompt us to redefine our role in the global telecom supply chain. We must embed higher value design AI-driven solutions, to efficient energy technology and to export finished innovations that align with global priorities such as climate recovery, but to embed higher value designs and embed them.”
