By-Ashok Chandak, President of IESA
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. India does not have any major advantage compared to other Asian countries anymore if 25% tariff above baseline 10% is continued. particularly smartphone exports, might face challenges due to the proposed tariffs. Though, India might sail through from companies diversifying their supply chains away from ChinaHowever, 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. As india donot make much semiconductors , it won’t be affected in short term. 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.