As the global electronics trade adapts to a new tariff environment, India’s ability to respond with agility and foresight will be critical in sustaining its upward trajectory in the value chain.
In a move reshaping global trade dynamics, the United States on April 2, 2025, announced the imposition of reciprocal tariffs on imports from major trading partners. For India, this includes a “discounted” tariff rate of 26%—stacked on top of existing duties—marking a pivotal moment for Indian electronics exporters.
In response to this development, the Electronic Industries Association of India (ELCINA) organized a webinar titled “US Reciprocal Tariffs – Challenges and Opportunities for the Indian Electronics Sector.”ELCINA also released a comprehensive White Paper during the event, highlighting how India—despite facing a 26% tariff—enjoys a relative advantage over several regional competitors. The session aimed to dissect the implications of the new policy, particularly for electronics exports, and offer a roadmap to industry stakeholders.The expert panel for the webinar featured leading voices from Lakshmikumaran & Sridharan (LKS). Mr. V. Lakshmikumaran, Founder and Managing Partner, brought his extensive legal and trade policy expertise to the discussion. He was joined by Mr. Devinder Bagia, Partner at LKS, who provided key insights into regulatory implications and trade strategy. Adding further depth to the panel was Ms. Disha Jain, also a Partner at LKS, who shared perspectives on compliance, policy interpretation, and potential legal avenues available to Indian exporters navigating the new tariff regime.
The webinar featured a comprehensive analysis of the U.S. reciprocal tariff regime, examining its direct implications on Indian trade and exports. It offered a comparative overview of tariff rates imposed on other key economies, highlighting significantly higher duties on countries like China (up to 54%), Vietnam (46%), and Indonesia (32%), thereby contextualizing India’s relative positioning. A sector-specific outlook was also presented, focusing on high-impact areas such as smartphones, telecom equipment, and semiconductor components. The session concluded with strategic policy recommendations aimed at helping Indian exporters and manufacturers navigate the evolving trade landscape and leverage emerging opportunities in global supply chains.
The Indian electronics sector, particularly the smartphone and telecom equipment segments, is expected to retain a competitive edge in the U.S. market. Smartphone exports, which brought in nearly $7 billion from the U.S. in 2024, face pricing challenges under the new tariff regime. However, key players like Apple, Samsung, Foxconn, and Tata continue to strengthen their manufacturing footprint in India, especially as tariffs render Chinese and Vietnamese production less viable.
In the telecom hardware space, products such as routers, modems, and network switches—worth approximately $1.84 billion in 2024—stand to benefit from India’s lower relative tariff burden, positioning the country as a preferred alternative supplier for U.S. buyers. The webinar underscored how global supply chain realignments and India’s Production-Linked Incentive (PLI) scheme are accelerating the nation’s transformation into a global electronics manufacturing hub.
Despite these strategic advantages, concerns linger. India’s electronics exports to the U.S. hit $10 billion in FY 2023–24, while imports from the U.S. remained low at $3.17 billion, reflecting a significant trade imbalance. High Basic Customs Duties (e.g., 16.5% on smartphones) on U.S. imports could also trigger retaliatory concerns.
The webinar concluded with forward-looking recommendations to help India adapt to the evolving trade environment. Key among them was the need to strengthen bilateral trade negotiations with the United States to secure improved market access for Indian electronics exports. Participants also emphasized the importance of increasing the integration of U.S.-made components into Indian export products, which could help ease tariff pressures and enhance trade synergies. Exploring alternative export routes through countries with tariff exemptions was suggested as a tactical measure to maintain competitiveness. Additionally, stakeholders were encouraged to make better use of duty drawback schemes and other available trade facilitation provisions to mitigate the financial impact of the new tariff structure.
ELCINA’s initiative brings together policy, legal, and industry perspectives to ensure the Indian electronics ecosystem remains resilient and competitive.
