India’s Electronics Production Hits 33-Month High Amid Tariff Concerns

India’s computer and electronics production surged to a 33-month high in March, recording a growth rate of 21.5 percent compared to 11.2 percent in February. Economists attribute this spike to manufacturers rushing goods to the US to preempt tariff hikes announced by President Donald Trump earlier this month.  

 

Trump’s tariff policy, which includes a 36 percent duty on Indian goods, has prompted producers to expedite shipments to American shores. Apple, for instance, airlifted five flights of iPhones in March to meet demand ahead of potential tariff increases.  

 

The surge in production is not limited to electronics. Electrical equipment production rose to 15.7 percent in March, while machinery and motor vehicle manufacturing also saw significant growth. Analysts suggest that inventory accumulation ahead of tariff announcements may have contributed to the industrial uptick.  

 

While the tariff environment poses risks to exports, India’s manufacturing sector has shown resilience, with industrial growth rising to 3 percent in March from 2.7 percent in February. The long-term impact of Trump’s trade policies remains uncertain, but the current production figures highlight India’s ability to adapt to global economic shifts.  

 

Economic highlights:  

 

- Electronics production growth reaches 21.5 percent in March, up from 11.2 percent in February  

- Tariff concerns drive expedited shipments to the US, including Apple’s airlift of iPhones  

- Electrical equipment, machinery, and motor vehicle production also see significant increases  

- Industrial growth rises to 3 percent in March, reflecting sectoral resilience  

- Analysts caution about potential risks to exports under new tariff policies  

 

Sources: Moneycontrol, Economic Times, India Ratings and Research