As the United States moves forward with the imposition of a 25% tariff on select Indian goods, the Indian electronics industry finds itself at a crucial inflection point. Industry leaders have expressed concern over the short-term disruption this measure may cause to India’s fast-growing export momentum, particularly in the electronics and smartphone segments.
Mr. Ashok Chandak, President of the India Electronics and Semiconductors Association (IESA), commented on the development, stating that while the tariffs present a temporary setback, they also bring to light the broader need for strategic recalibration in India’s electronics sector.
According to Mr. Ashok Chandak, “The imposition of a 25% tariff by the U.S. on Indian Good will be short term. Indian electronics exports is a short-term challenge that could disrupt supply chains and dent price competitiveness.”
He noted that India’s comparative edge could diminish if the higher tariff continues. “India does not have any major advantage compared to other Asian countries anymore if 25% tariff above baseline 10% is continued,” he added.
The smartphone export segment is seen as particularly vulnerable. Mr. Chandak warned, “Particularly smartphone exports, might face challenges due to the proposed tariffs.”
However, he acknowledged a possible cushion for India due to evolving global supply chain dynamics. “Though, India might sail through from companies diversifying their supply chains away from China,” he said.
In light of these developments, Mr. Chandak emphasized the urgent need for a strategic shift in India’s electronics ecosystem. “However, it also underlines the urgency for India’s electronics sector to diversify export markets, deepen domestic markets, develop india brands and products, and move up the value chain to reduce dependency on price-sensitive, tariff-exposed exports.”
On the semiconductor front, he pointed out that the impact may be minimal for now. “As india do not make much semiconductors, it won't be affected in short term," he said.
Looking ahead, Mr. Chandak expressed cautious optimism regarding diplomatic negotiations between the two nations. "We hope that the ongoing final trade negotiations will create some positive outcome in next few weeks or months as both countries may want to find good balance.”
The statement from IESA underscores the need for policy resilience and industry adaptation, as India navigates the challenges of global trade shifts while aiming to become a robust hub for electronics innovation and exports.
𝐒𝐭𝐚𝐲 𝐢𝐧𝐟𝐨𝐫𝐦𝐞𝐝 𝐰𝐢𝐭𝐡 𝐨𝐮𝐫 𝐥𝐚𝐭𝐞𝐬𝐭 𝐮𝐩𝐝𝐚𝐭𝐞𝐬 𝐛𝐲 𝐣𝐨𝐢𝐧𝐢𝐧𝐠 𝐭𝐡𝐞 WhatsApp Channel now! 👈📲
𝑭𝒐𝒍𝒍𝒐𝒘 𝑶𝒖𝒓 𝑺𝒐𝒄𝒊𝒂𝒍 𝑴𝒆𝒅𝒊𝒂 𝑷𝒂𝒈𝒆𝐬 👉 Facebook, LinkedIn, Twitter, Instagram
