The Recent Changes in U.S. Tariff Policy
The U.S. administration has made significant revisions to its tariff policy that can dramatically benefit India in the electronics export sector. Following the removal of additional import duties on several electronic products, India stands to gain a notable competitive edge in exporting iPhones, smartphones, tablets, and laptops to the United States. This shift is reported by the India Cellular and Electronics Association (ICEA).
Tariff Advantages for India and Vietnam
As a result of the new policy, electronics exported from India and Vietnam will be 20% cheaper than equivalent products shipped from China. This presents a substantial opportunity for Indian manufacturers to expand their market share in the U.S. The ICEA chairman, Pankaj Mohindroo, confirmed that India now enjoys a zero-tariff status on key electronic items such as iPhones, laptops, and tablets when exported to the U.S.
Implications for the Electronics Market
This decision comes at a time when the electronics market is rapidly evolving. With the United States lifting reciprocal tariffs on certain imports from China, India’s position has become more favorable. Both India and Vietnam will now compete with China in the U.S. market without the burden of additional tariffs. In the long run, this could lead to increased production and sales, ultimately benefiting consumers in the U.S. with more affordable and diverse options.
Impact of US Policy Shifts on India’s Electronics Export Landscape
Introduction to the Electronics Manufacturing Sector
The Indian electronics and smartphone manufacturing sector is witnessing significant growth, particularly represented by major players such as Apple, Foxconn, and Dixon. According to the India Cellular and Electronics Association (ICEA), the export landscape has transformed considerably, creating ample job opportunities within the iPhone ecosystem.
Rise in Mobile Phone Exports
Recent data shows that mobile phone exports from India surpassed ₹2 lakh crore in 2024–25, marking a 55% increase from ₹1.29 lakh crore in the previous year. Notably, Union Minister Ashwini Vaishnaw highlighted that iPhones alone accounted for ₹1.5 lakh crore of these impressive exports. This substantial contribution underscores the importance of Apple’s operational strategies in India.
Repercussions of US Policy Changes
The shift in US policy is poised to support Apple’s manufacturing and export operations, offering a more stable environment following the uncertainties introduced by the Trump administration’s reciprocal tariff order. Currently, important exemptions cover a range of products including smartphones, laptops, and semiconductor chips, although equipment for manufacturing semiconductors continues to be subjected to high tariffs. As Mohindroo aptly put it, there is a feeling that these shifts would prompt significant realignments without causing severe disruptions in the market.