Why India is not a ‘tariff king’? Zero and low electronics import duties reportedly outshine those of Vietnam, China, and their neighbours, making it a surprising winner in global trade equations.
India’s electronics tariffs are among the most competitive globally, particularly when compared with regional players like Vietnam and China, according to a recent report by Moneycontrol.
Citing a 2023 data, the report stated that the country imposes zero import duties on most IT hardware, semiconductors, computers, and related components. The average most favoured nation (MFN) tariff stands at 10.9% for electronics and 8.3% for computing machinery, making India a cost-effective destination for tech imports.
In contrast, Vietnam’s MFN tariffs range from 8.5% to 35% on electronics, with rates reaching 50% on computing machinery. China’s average tariff is lower at 5.4%, but it can increase to 20% for electronics and 25% for computing hardware, depending on the technology’s sensitivity.
Meanwhile, Indonesia’s rates average 6.3% for electronics, with upper limits of 20% and 30% for electronics and computing gear, respectively.
Despite this, former US President Donald Trump recently renewed his criticism of India’s trade practices, labelling the country a ‘tariff king’ and threatening further hikes in duties on Indian goods. He cited India’s ongoing purchases of Russian oil as one reason for the tough stance.
While neighbours Bangladesh and Pakistan have higher average MFN rates at 14.7% and 12.2%, India faces steeper penalties from the US. Indian exports currently attract a 25% US duty, with Trump signalling plans to raise this rate significantly.
India’s relatively low tariffs are a move to strengthen its position as a global electronics hub, especially as the world reconfigures supply chains away from China. The data suggest that India may not only be tariff-competitive but also positioned as a more accessible market for high-tech trade.
