Strategic Moves and Trade Agreements Could Boost India’s Export Potential | Image-ANI |
Mumbai: India has emerged as a favorable player in the face of new US tariffs on electronics, especially compared to major competitors like China, Vietnam, Thailand, and Indonesia. Experts credit India’s proactive negotiations and strong leadership for this advantage.
China faces tariffs as high as 54-79 per cent, while Vietnam deals with 44 per cent duties. In contrast, India’s tariff exposure remains comparatively lower, offering a valuable opportunity to boost electronics exports to the US.
The Role of the Bilateral Trade Agreement (BTA)
The real game-changer for India’s electronics trade will be the successful negotiation of a Bilateral Trade Agreement (BTA) with the US.
Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association (ICEA), emphasized that the BTA should be the cornerstone of India’s trade strategy. It would provide stable market access, tariff predictability, and a framework to scale high-value electronics exports.
Strategic Approaches to Secure Growth
Industry leaders stress the need for swift action, balancing trade diplomacy with domestic policy reforms to maintain India’s competitive edge.
Ashok Chandak, President of the India Electronics and Semiconductor Association (IESA), suggested a dual-track approach—pursuing BTA negotiations while implementing strategic countermeasures to safeguard economic interests.
Both India and the US aim to expand bilateral trade to $500 billion, creating mutual opportunities and strengthening the case for continued negotiations on the BTA.
Key Sectors Benefiting from Tariff Exemptions
Sectors like semiconductors and pharmaceuticals are exempt from these tariffs, recognizing their importance in global supply chains and public health. This exemption provides India with room to grow in these strategic industries without additional trade barriers.
India’s Strategic Response
India’s relatively low electronics imports from the US also give it leverage to adjust tariffs and maintain a healthy trade balance.
Experts believe India can respond proactively through strategic planning and strong negotiations with US counterparts. The focus should be on converting the current opportunity into sustained export growth and deeper integration into global value chains.
Industry Commitment to Growth
The IESA remains committed to collaborating with the Ministry of Electronics and IT and the Ministry of Commerce and Industry to develop strategies that minimize risks and position India as a global electronics hub.
As global supply chains realign due to US trade policies, India’s electronics sector is poised to strengthen its role globally. To capitalize on this potential, India must continue advancing strategic policies that enhance its attractiveness to international investors. (With IANS Inputs)
