ICEA Urges Zero-Duty on US Electronics, Citing Global Precedents:

As stated by the India Cellular and Electronics Association (ICEA), offering zero duty access on principal electronic components to the US would not be unprecedented, as India has similar arrangements with Japan, Korea, and ASEAN countries.

The organization, which represents Apple, Foxconn, Dixon and the Chinese mobile phone manufacturers, also seems hopeful on the USA India major undertaking bilateral trade agreement (BTA) being finalized.

These comments come when there is increasing apprehension on the US President Trump’s declaration of implementing tit for tat tariffs on India and other countries starting April 2.

"Zero duty access in a reciprocal agreement for principal electronic components is not a novel concept to India, as we have similar provisions in our FTAs with Japan, Korea and ASEAN countries like Vietnam, Thailand and Indonesia," Mohindroo said.

In this respect, the industry body has called upon the government to include the zero duty concession to the possible agreement on smartphones, hearables and wearables, color televisions, consumer electronics, appliances, lighting and other associated items.

With such allocations, Mohindroo estimates India's electronics exports to the US, which stand at $10 billion, could reach as high as $80 billion by 2030, a staggering 800% increase.

By the autumn of 2025, India and the United States hope to complete the first phase of the multi-sector BTA agreement.

Industry representatives urged the Indian government to remove customs duties on US smartphones, wearables, and consumer electronics that do not have local manufacturing competition.

According to Moneycontrol, ICEA made its recommendations on March 1 to commerce secretary Sunil Barthwal on March 5.

This included a zero tariff for imports of smartphones, IT peripherals, servers, television sets, air conditioning units, and telecom and other consumer electronic goods.

India's softened enforcement of the tariffs is intended to mitigate the impact of a possible escalation of tariffs on the export of smartphones, which is one of the leading product categories in India. The Indian industry has argued that unrestricted access to the US market is crucial for India’s competitiveness, especially in comparison to China and Vietnam.

India currently charges a basic customs duty of 16.5% BCD and surcharge on the imports of American smartphones and electronics. Imposing such a duty in return will erode India’s cost benefit and therefore hinder its manufacturing competitiveness.

This proposed zero duty structure will help India in achieving the $50 billion target of smartphone exports and $80 billion of total electronics exports to the US while working towards a national target of $500 billion in electronics production.

“As per Mohindroo, we must focus on developing a seamless plan to align with US supply chains and position India as a favorable destination for electronics manufacturing – specifically for smartphones, IT hardware, wearables, ACs, and consumer electronics”