The gap between responsibilities or import taxes is one of the lowest According to two people who were aware of the problem, they spoke anonymously.
According to the Ministry of Commerce, India faces an average tariff of 0.41% for electronic products exports to the United States, while U.S. goods under the same category face a tax of 7.64%, resulting in a 7.23% gap of 7.23%. 13% of diamonds and gold is well below 13%. 32% of items, meat and processed agricultural products.
US tech giant Apple began manufacturing in India in 2017 and has been India’s largest contributor to the export of US electronics to the United States. “This could affect how the U.S. tariff adjustments are made to Indian electronic goods,” people said, stressing that any tax rate hikes would also affect U.S. companies.
The volume of mobile phones and electronic components shipped to medical devices in India soared to the US from $986.22 million in fiscal 185 to $2.05 billion in fiscal 24, according to the Commerce Department. These account for 35% of the total exports in the last fiscal year.
The US market also brings huge opportunities. In the global electronic transactions of $4 trillion a year worldwide, the United States alone imports nearly $700 billion of such goods.
“Given this dependence, India cannot achieve the Prime Minister’s vision of $500 billion in electronic manufacturing without deep integration into the U.S. market,” said Ronak Pol, head of the Economic Development Foundation of Policy Advocacy Company.
Furthermore, India’s high tariffs are used as a strategic tool to protect domestic industries, but now they go beyond competitive hubs such as China, Vietnam, Thailand and Mexico. “The U.S. mutual tariff response could erode India’s competitiveness, undermine supply chain changes and prevent future investments.”
Inquiries sent to the Department of Commerce, external affairs, the U.S. Embassy and the Apple Department on Monday have not been answered.
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“Trump’s reciprocal tax plan violates the WTO’s most popular country (MFN) principle, which requires countries to apply for the same tariffs,” said Ajay Srivastava, a former Commerce Department official and founder of the Global Trade Research Program (GTRI). Tariffs on transactions are partners unless a Free Trade Agreement (FTA) is reached. The U.S. reciprocity tariff program violates this rule.”
However, the Indian government hopes that the electronics sector will not be included in the reciprocal tariffs, as the United States “benefits greatly from the export of electronic goods, including smartphones.”
The second person said India is interacting with the United States, “as a friendly partner, we expect positive results in all areas”.
Read also | India seeks to lower U.S. mutual tariffs amid trade tensions
India has reduced the basic customs duties on carrier-grade Ethernet switches from 20% to 10%, making them consistent with the obligations of non-carrier-grade Ethernet switches. The reduction is expected to benefit U.S. exporters, who provided India with $653.4 million worth of these products in the last fiscal year. Tariffs on synthetic espresso essences fell from 100% to 20%, benefiting from $21 million in U.S. exports.
The NDA government, led by Prime Minister Narendra Modi, has set an ambitious goal to achieve $500 billion in electronics exports from 2030 to 2030. Business Prime Minister Piyush Goyal urged the industry on Monday (February 24) to earn $100 billion in the next electronics export for five to seven years.
Until January of fiscal year 200, the industry’s overseas goods had exceeded the previous fiscal $29.1 billion to $30.21 billion. In addition to the United States, India also exports electronic products to the UAE, the Netherlands, the United Kingdom, Italy, the Czech Republic, Austria, Germany, Russia, China, France, Japan and Hong Kong.
Read also | Trump weighs tariffs to offset foreign taxes on tech companies
