India's tariffs are as competitive in electronics and technology compared to Vietnam and China, data shows as per 2023 levels.
India levies zero duties on most IT hardware, semiconductors, computers and associated parts, with an average most-favoured nation (MFN) rate of 10.9 percent on electronics and 8.3 percent on computing machinery.
In comparison, Vietnam's MFN rate is at 8.5 percent on electronic equipment going up to 35 percent and a maximum of 50-percent on computing machinery. On the other hand, China's average MFN rate at 5.4 percent can go as high as 20 percent on electronics and up to 25 percent on computing machinery (with restrictions based on technology sensitivity). Indonesia too levies an average rate of 6.3 percent on electronic equipment going up to 20 percent and up to 30 percent on computing machinery.
Donald Trump has labelled India a "tariff king" but analysis shows that the country's tariffs are much lower than their South Asian partners.
Bangladesh's tariff was even higher 14.7 percent, whereas Pakistan levied an average duty of 12.2 percent under Most Favoured Nation status.
Bangladesh has received a more favourable rate of 20 percent by President Donald Trump, whereas Pakistan's exports to the US will face a 19 percent duty. Instead, India has been saddled with a 25 percent duty plus penalty.
The US president on August 5 again reiterated his stance for penalising India with even higher rates for its purchases from Russia and for levelling higher tariffs against US goods.
“India has not been a good trading partner...So we settled on 25%, but I think I’m going to raise that (tariff) very substantially over the next 24 hours, because they’re buying Russian oil,” US President Donald Trump told CNBC in an inteview.
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