As trade tensions rise following a fresh wave of tariffs announced by US President Donald Trump, Indian authorities are preparing for possible effects — including the risk of China dumping electronics products in international markets, including India.
S Krishnan, secretary at the Ministry of Electronics and Information Technology (MeitY), said on April 7 that while no immediate threat has materialised, the government is evaluating various outcomes to stay ahead of any disruption.
“This is one of the possible scenarios,” Krishnan said, referring to dumping. “We will need to be prepared for all scenarios.”
Dumping, a practice where goods are exported at prices below their usual value, often leads to market distortions and poses a threat to domestic manufacturers.
These comments come at a time when there are fears of low-cost Chinese imports flooding the Indian market as Beijing may seek alternative destinations after US increased tariffs on Chinese goods to 54 percent, set to take effect on April 9.
The latest tariff salvo — a 26 percent levy imposed on Indian imports by the Trump camp on April 3 — has triggered unease globally.
India, however, believes it is relatively well-positioned. “We’re in a better place compared to others we compete with,” Krishnan noted, pointing to the steep tariffs already faced by China (54 percent) and Vietnam (46 percent) in the American market.
He added that the Commerce Ministry is leading the response and is in touch with industry stakeholders. “We’re speaking to all manufacturers. They are not overly concerned at this point. It’s a dynamic situation.”
The ripple effects of the new tariffs could also weigh on India's growth outlook. Economists have flagged potential downside risks to the Reserve Bank of India’s 2025–26 GDP projection of 6.7 percent, as well as the government’s own forecast range of 6.3 to 6.8 percent.
Also read: India ready to take steps to check China dumping amid Trump tariffs
During his announcement, Trump had cited trade imbalances with India, saying, “India, very, very tough… They charge us 52 percent. We charge them almost nothing, for years.”
Meanwhile, Krishnan also said the government is close to finalising the rules under the Digital Personal Data Protection (DPDP) Act. The rules, which will operationalise India’s landmark data law, are expected to be released within six to eight weeks.
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