The effect of the US’s 26% tariff on India’s vision to tap the global electronics and semiconductor market

The world has become increasingly volatile, triggering a paradigm shift in geopolitics and economic policies. While India’s per capita income still lags behind that of wealthy nations, the country is rapidly emerging as a global power, leveraging its unique capabilities and offering a growth blueprint for an AI-driven tech economy. India envisions a multipolar world that respects every region’s sovereignty and pursues bilateral deals with major economic powers.

The US’s carefully crafted 26% tariff on Indian imports, however, could undermine the growth of India’s exports to the US. The US aims to support India’s economic rise by encouraging competition with its rivals, but India is cautiously evaluating its options. Is it wise to compete with China in every domain? Could China and other Far East nations be better partners for India than the US in certain areas? With this brief note, let’s explore the tariff’s impact on India’s electronics and semiconductor sectors.

Semiconductors: As of April 2025, India hardly exports any complex high-tech semiconductors, leave alone to US, even to any other place in the world. India is a huge importer of semiconductors around 30-40 Billon US$ in 2024-2025 in the form both finished goods and ...