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AFRICA, ASIA, BRAZIL, BTA, BUSINESS STANDARD, CHINA, EGYPT, EXPORTS, FOREIGN INVESTMENT, ICEA, INDIA, INDIA CELLULAR AND ELECTRONICS ASSOCIATION, INDONESIA, INTERNATIONAL TRADE, MEXICO, MO, MOHINDROO, NORTH AMERICA, PAN, PANKAJ MOHINDROO, SOUTH AMERICA, SUPPLY CHAIN, THAILAND, TRADE, US, VIETNAM
Nia Simpson
India’s Competitive Edge in Electronics Exports Amidst US Tariffs
The ICEA reports that India’s 27% tariffs are more favorable than those faced by competitors like China and Vietnam, which have higher rates. The success of a Bilateral Trade Agreement is crucial for India’s long-term electronics trade with the US. The agency emphasizes the need for strategic initiatives to enhance export growth and supply chain integration.
The India Cellular and Electronics Association (ICEA) affirms that despite the imposition of 27% tariffs by the United States on imports from India, the country is better positioned than competitors such as China, Vietnam, and Indonesia, which face even higher duties. Reports indicate that China’s combined tariffs may reach up to 79%, while those for Vietnam stand at 46%.
Pankaj Mohindroo, Chairman of ICEA, emphasized the importance of a Bilateral Trade Agreement (BTA) for the long-term success of India’s electronics trade with the US. He pointed out that while nations like Brazil and Egypt enjoy slightly more favorable tariff treatments, the challenge remains in successfully negotiating a BTA.
ICEA has highlighted that the BTA should become a central element of India’s trade strategy, aiming to ensure reliable market access, predictable tariffs, and a foundation for scaling electronics exports. Mohindroo noted that India’s position has improved relative to competitors such as China, Vietnam, Thailand, and Indonesia due to concerted diplomatic efforts.
As the international trade landscape evolves, Mohindroo cautiones against potential retaliatory actions from other nations but stresses the need to leverage this opportunity for sustained export growth and the integration of supply chains in the electronics sector.
In conclusion, India’s position in the electronics export market remains strong compared to rivals like China and Vietnam due to the US tariffs. However, the focus now shifts to securing a Bilateral Trade Agreement to ensure long-term growth and stability. The ICEA advocates for strategic initiatives that promote export competitiveness while mitigating potential retaliatory measures from other countries.
Original Source: www.business-standard.com
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