India's Advantage in Electronics Exports to the US

India retains a strategic advantage in consumer electronics exports to the United States, despite recent US tariff exemptions for China on popular electronics like smartphones and PCs.

Tariff Implications and Market Shifts

• Recent US tariff exemptions on certain electronics limit the immediate advantage for India.
• India's share in global iPhone manufacturing is expected to at least double from 14-15% in 2024, as Apple shifts production from China to India.
• Dixon Technologies, a major electronics manufacturer in India, is in talks to expand its smartphone export capacity to the US.

Industry Perspective and Strategic Moves

• Industry leaders suggest maintaining negotiations with US companies to emphasize manufacturing benefits in India.
• There is a call for the Indian government to expedite the bilateral trade agreement with the US to strengthen trade relations.
• Despite tariff exemptions, India and Vietnam retain a 20% tariff advantage over China on electronics.

Future Prospects and Competitiveness

• The trend of shifting electronics manufacturing from China to India is expected to accelerate.
• India's policies on component manufacturing will enhance local smartphone production competitiveness.
• The US remains India's largest electronics export destination, accounting for one-third of total exports, amidst a declining share of Chinese exports to the US.

Conclusion

Overall, while recent tariff changes pose challenges, India's strategic position and ongoing negotiations can potentially enhance its role as a major player in global electronics manufacturing and exports.