India's IT Sector Not Overly Concerned by US Tariffs

New Delhi, Apr 7 (PTI) The electronics and IT sector manufacturers are not "overly" concerned about the recent hikes in import duty by India's largest trading partner the US, a top government official said on Monday.

However, the impact will depend on how the tariff situation plays out ahead, Electronics and IT Secretary S Krishnan said.

"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.


The US on April 3 imposed an additional 26 per cent tariff on Indian goods, effective April 9.

The sector players are of the view that the Indian industries are better placed as compared to their competitors in the electronics segment.

While the US has imposed an additional 26 per cent import duty on India, its competitor Vietnam is facing a 46 per cent tariff, China 34 per cent, Indonesia 32 per cent, Taiwan 32 per cent and Thailand 36 per cent.

Mobile phone is the biggest contributor to India's electronics manufacturing landscape, with Apple and Samsung being the top exporter in the country.

The majority of iPhones are made in China followed by India, while Samsung has its biggest factory in Vietnam after India.

Commenting on the possible impact of these tariffs, telecom gear maker GX Group CEO Paritosh Prajapati said the 26 per cent tariff will impose a notable cost barrier on Indian hardware exports to the US.

"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.

HFCL Managing Director Mahendra Nahata said that the US tariffs should be seen as a catalyst, not a constraint.

"While tariffs challenge cost structures, they also push us to redefine our role in the global telecom supply chain. Instead of just assembling components, we must embed higher value designing AI-driven solutions, patenting energy-efficient technologies, and exporting finished innovations aligned with global priorities like climate resilience," he said.