Karnataka Minister Discusses US Tariff Impact on Industries

Bengaluru, Apr 23 (PTI) Karnataka Large and Medium Industries Minister M B Patil on Wednesday held a meeting with senior officials of the department to review the potential impact of US-imposed tariffs.

Patil also assessed the progress of MoUs signed during the Global Investors Meet (GIM)–Invest Karnataka 2025 and discussed recent geopolitical developments affecting industries in the state.

"The United States, which had earlier announced the imposition of tariffs on products imported from India, has now put the decision on hold for three months. The meeting focused on the possible impact of these tariffs on Karnataka's key sectors, including IT, BT, electronics, pharmaceuticals, defence-related products, and other industrial goods," Minister Patil said.

The minister noted that Karnataka should treat this development as an opportunity, his office said in a release.

Industries in other countries, which could be severely affected by the US tariffs, may consider relocating their operations to Karnataka.

The meeting also discussed how this situation could be strategically leveraged to boost the state's industrial growth and what measures need to be taken to retain the MoUs already signed, he added.

According to the minister, the Centre is deliberating on how to respond to the situation at the national level.
"Accordingly, Karnataka must also be prepared," he said.

Michael, a trade expert working with the Boston Consulting Group (BCG), who attended the meeting virtually from the USA, said that the impact of the tariffs is still being analysed and that it is difficult to predict the overall effect at this point.

He added that China has already been subjected to massive tariffs, and the consequences of that are also under study.

Principal Secretary of the Industries Department S Selvakumar and Commissioner Gunjan Krishna were also present at the meeting, the release said.