India Unleashed: How Tariffs and Tech Are Redefining the Nation's Manufacturing Landscape

India stands to gain from the current US-China tariff spat, positioning itself as a critical hub in the world of tech manufacturing. The recent trends have instilled a promising scenario for India, especially in electronics exports. The lifting of US tariffs on some electronics imported from India has rendered its exports 20% lower than those of China, providing a huge competitive advantage in the American market.

 

Key Highlights:

 

Electronics Exports Boom: India's electronics exports have seen a boom, fueled by policy-benefitted initiatives and a supportive regulatory regime. Exports have picked up from $11 billion in FY21 to $26 billion in the current fiscal.

 

iPhone Manufacturing Shift: Apple is likely to ramp up iPhone production in India, looking to produce as much as 25% of all iPhones by 2028. The move is viewed as a strategic departure from China.

 

Tariff Advantage: India has zero tariffs on exports of smartphones and laptops to the US, in contrast to 20% of China, which makes Indian exports competitive.

 

Trade Infrastructure and Innovation: Budget 2025 focuses on the development of trade infrastructure and innovation, which is essential for sustaining competitiveness in global trade.

 

With India further developing its manufacturing and trade infrastructure, it is poised to take a greater portion of the global value chain. The current trade dynamics are both challenging and opportunity-rich for India, but its expanding electronics industry and wise trade policies are poised to propel future growth.

 

Source: Hindustan Times, Times of India, Economic Times.