Although long-term growth needs strategic policies, trade deals, and improved infrastructure, India’s electronics sector could thrive short-term with US tariffs on China, say experts.
India’s electronics sector stands to gain in the short term due to the US’s 10 per cent tariff on Chinese imports, according to a report by Moneycontrol. However, experts stress the need for proactive policies and trade agreements with the US to sustain long-term growth.
The new tariff, which includes smartphones and laptops, is lower than the 25 per cent tax on goods from Canada and Mexico. It is expected to benefit brands like Apple and Motorola, which use India as a key export base.
Sunil Vachani, chairman of Dixon Technologies, said that while the tariff may offer immediate advantages, long-term growth depends on broader US-India trade agreements. He highlighted India’s competitive edge in high-value manufacturing.
Dixon Technologies, which works with brands like Samsung and Xiaomi, operates multiple facilities in India. Apple also manufactures iPhones in India through Foxconn and Tata Electronics.
Vachani pointed out that India could become a strong manufacturing alternative to Mexico, but infrastructure and regulatory improvements are needed. Products like smartphones, laptops, and lighting are expected to benefit from this shift.
India’s mobile phone exports reached $20.4 billion in 2024, with Apple accounting for 65 per cent. Analysts predict Apple and Motorola will increase exports from India through local manufacturers like Tata Electronics and Foxconn.
