US tariffs unlikely to significantly impact India's major electronics exports: MeitY Secretary
New Delhi, July 28
India's major electronics exports are unlikely to witness any significant impact from the latest US tariff measures as electronics and semiconductor-related shipments continue to remain largely exempt from the levy, Secretary, Ministry of Electronics and Information Technology, S. Krishnan, toldin an exclusive interview on Tuesday.
Krishnan said while some smaller product categories that do not contain semiconductors and are outside the exemption framework could see an impact, the country's key electronics exports are expected to remain largely insulated.
"We do not see too much of an impact on electronics exports, electronics and semiconductor-related exports except some will continue to stay exempted from this particular levy. Therefore, I think there will not be too much of an impact on the major electronics exports from India," he said.
He, however, added that some niche product categories could face headwinds.
"It could affect some of the smaller exports and some of the less key elements which don't contain semiconductors and are not covered under the exemption clause," Krishnan said.
As per the govt data, India's electronics exports surged to Rs 4.24 lakh crore (USD 47.96 billion) in FY 2025-26, marking an eleven-fold increase from Rs 38,263 crore in 2014-15. Electronic goods are now India's third-largest export category.
To further deepen the value chain, the Government has also launched the Electronics Components Manufacturing Scheme (ECMS) in 2025. The scheme focuses on promoting domestic manufacturing of Printed Circuit Board, electrical and mechanical components, camera modules, etc. Against the estimated investment proposals of Rs 59,350 crore, the government has received investment proposals of Rs 1.15 lakh crore.
On India's semiconductor ambitions, the MeitY Secretary said the upcoming Semicon 3.0 event will showcase the country's growing semiconductor ecosystem across the entire value chain, from manufacturing to end-use applications.
"The important thing in Semicon 3.0... will be that you will see the entire value chain displayed in the way semiconductors are made all the way down to how they are used," he said, adding that the event is expected to witness strong participation from global companies.
Krishnan said the government's recently announced India Semiconductor Mission (ISM) Phase 2 has generated considerable industry interest and expressed confidence that the event would see participation from major global semiconductor firms along with significant investment announcements.
Highlighting the evolution of the government's semiconductor policy, Krishnan said Semicon 2.0 marks a shift from focusing only on chip fabrication to building a complete semiconductor ecosystem.
"Semicon 1 was basically focussed on manufacturing of chips. In Semicon 2.0, we are going beyond those companies to take a complete ecosystem approach so that the equipment used to manufacture semiconductors, the materials, the gases, the chemicals... and likewise the design system is also given greater emphasis," he said.
He added that the revised policy also modifies funding and support mechanisms to encourage greater investments in segments where additional capacity is needed.
— ANI
Reader Comments
While I'm relieved major exports are exempt, I'm curious about the "smaller product categories" that could be affected. The government should analyze exactly which sub-sectors might face headwinds and provide targeted support. India's electronics ecosystem is still developing, and we can't afford to lose even niche markets.
The Semicon 3.0 event sounds promising. India needs to move beyond just assembly and testing to actual chip fabrication. ISM Phase 2 attracting global interest is a good sign, but we need to see concrete investment announcements, not just expressions of interest. Actions speak louder than words yaar!
I appreciate the government's ecosystem approach with Semicon 2.0. Focusing on equipment, materials, and chemicals alongside chip manufacturing is smart. Without a complete supply chain, we'll remain dependent on other countries. The ECMS scheme receiving 1.15 lakh crore in proposals against 59,350 crore target shows industry confidence.
As someone working in the electronics supply chain, this is reassuring but we shouldn't get complacent. The exemption might be temporary, and global trade tensions could escalate. India must accelerate domestic R&D in semiconductor design and reduce import dependence. Also, what about the small and medium enterprises that might get caught in the crossfire?
Impressive growth from Rs 38,263 crore to Rs 4.24 lakh crore! But let's remember that much of this is assembly of imported components. The real test is whether we can build indigenous semiconductor fabs and component manufacturing. The ECMS
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