Priyanka Tiwari
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Recently, the U.S. lifted tariffs on a range of electronic devices like laptops, tablets, and smartphones for select countries, which now includes India. This change gives a competitive edge cost-wise to India's electronics exports by around 20% compared to Chinese products.
While India and Vietnam have now zero tariff access to the U.S. market, China still faces a 20% tariff on these goods. This will most likely hurt Chinese exporters while significantly aiding Indian exporters, particularly in the smartphone and laptop markets.
India’s Mobile Phone Export Industry Surges
Demand for exported mobile phones soared as India’s mobile phone exports hit record highs. Contributing significantly to this spike was the sales of smartphones, especially the iPhone.
Electronics production is on the rise in India. As a result, the country is being referred to as the next global electronics manufacturing hub.
Strategic Shifts in Global Manufacturing
The changes are part of India is coming out as the preferred option due to advancement in infrastructure and support to policy, alongside the geopolitical tussles around China.
The change is indicative of a shift in the core of the Indian strategy by making them focus on long term goals with India being the partner for electronics manufacturing and export.
Industry Outlook and Opportunities
The scope for India to participate in global electronics trade still remains. Since the U.S. imports electronics worth hundreds of billions of dollars, India has ample opportunities to increase its share.
To maintain and enhance this momentum, Indian companies need to work on operations, upgrade infrastructure, and build sustained competitiveness.
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