India-US Trade Deal: A Game-Changer for Mobile Manufacturing

India and the US have agreed to lower tariffs on Indian goods from 25% to 18%, enhancing India's role as a global manufacturing hub. The move supports electronics production, including significant iPhone exports, and foresees greater technology collaboration between the two countries under the new trade agreement.

In a strategic move to cement its position as a global manufacturing powerhouse, India has struck a landmark trade deal with the United States to reduce tariffs on Indian goods from 25% to 18%. This decision underscores India's potential as a critical player in global trade, particularly in the electronics sector.

The deal, praised by the Indian mobile industry body ICEA, aligns with India's strategy to scale up manufacturing capabilities and deepen integration into US-led global value chains. Electronics, notably mobile phones and semiconductors, remain exempt from tariffs, bolstering India's export strength substantially.

With India's electronics production experiencing a growth spurt, driven largely by iPhone exports, the trade agreement promises to catalyze further cooperation. The partnership is expected to usher in a new era of technology collaboration, with a vision to elevate electronics trade to USD 100 billion, contributing to an overarching USD 500 billion in bilateral trade objectives.

(With inputs from agencies.)