India Gains 20% Tariff Advantage on Electronics Exported to the US

India's export of iPhones, smartphones, and other electronics to the US will see a 20% cost reduction compared to China due to US tariff exemptions. This move offers a competitive edge to India and could spur growth in its electronics export sector, aiding job creation and economic development.

The United States government has provided a significant boost to India's electronics export sector by exempting iPhones, smartphones, tablets, and laptops from new tariffs. This exemption, announced over the weekend, positions India favorably against China, offering a 20% cost advantage for exports to the US. The India Cellular and Electronics Association (ICEA) underscores that India and Vietnam enjoy zero tariffs on these products when exported to the US.

ICEA's chairman, Pankaj Mohindroo, expressed optimism about the exemption's impact, noting that India's iPhone ecosystem is a major job creator and export driver. In the fiscal year 2024-25, India's mobile phone exports reached a new height, surpassing Rs 2 lakh crore, marking a 55% increase from the previous year.

The US's tariff exemptions ease supply chain pressures and offer a reprieve for global technology manufacturers. Industry leaders suggest that while this measure provides short-term relief, India's potential to become a key player in the global electronics market remains promising, with calls for creating sustainable competitive advantages.

(With inputs from agencies.)