Industries Minister holds meeting to discuss likely impact of US tariffs on Karnataka’s economy

Bengaluru: Large and Medium Industries Minister M.B. Patil recently held a meeting with senior officials of the department to review the potential impact of US-imposed tariffs, assess the progress of Memoranda of Understanding (MoU) signed during the Global Investors Meet (GIM) – Invest Karnataka 2025, and discuss recent geopolitical developments affecting industries in the state.

The United States, which had earlier announced the imposition of tariffs on products imported from India, has currently put the decision on hold for three months.

The meeting focused on the possible impact of these tariffs on Karnataka’s key sectors, including IT, BT, electronics, pharmaceuticals, defence-related products, and other industrial goods, Patil said.

The Minister noted that Karnataka should treat this development as an opportunity.

Industries in other countries, which could be severely affected by the US tariffs, might consider relocating their operations to Karnataka.

The meeting also discussed how this situation could be strategically leveraged to boost the state’s industrial growth, and what measures need to be taken to retain the MoUs that have already been signed, he added.

“The Union government is deliberating on how to respond to the situation at the national level. Accordingly, Karnataka must also be prepared,” Patil stated.

Michael, a trade expert working with the Boston Consulting Group (BCG), who attended the meeting virtually from USA, said that the impact of the tariffs was still being analysed and that it was difficult to predict the overall effect at this point.

He added that China had already been subjected to massive tariffs, and the consequences of that were also under study.

Principal Secretary of the Industries Department, S. Selvakumar, and Commissioner Gunjan Krishna were present at the meeting.