In a major boost to India electronics manufacturing and export ambitions, the United States has exempted key electronics products iPhones, smartphones, tablets, and laptops from new tariffs, granting India a 20% cost advantage over China for exports to the US market. The move is being hailed as a game changer for India’s electronics sector, opening doors to increased global competitiveness, job creation and economic growth.
The India Cellular and Electronics Association (ICEA) confirmed that both India and Vietnam currently enjoy zero tariffs on these products exported to the US. In contrast, goods imported from China continue to face elevated tariff barriers.
ICEA Chairman Pankaj Mohindroo highlighted that India’s growing iPhone manufacturing ecosystem has already become a strong export engine and employment generator. In the financial year 2024-25, India’s mobile phone exports surpassed ₹2 lakh crore, reflecting a staggering 55% year-on-year growth.
Mohindroo said “This exemption by the US not only reduces costs but enhances India’s reliability as a manufacturing hub at a time when global supply chains are realigning”.
The US decision provides short-term relief to tech manufacturers hit by supply disruptions and tariff pressures. However, industry leaders argue that India must seize this momentum to establish long-term, sustainable advantages including investments in R&D, infrastructure and semiconductor manufacturing.
Experts believe this development further cements India’s status as a viable alternative to China for electronics manufacturing. It could attract more foreign direct investment and boost domestic initiatives like ‘Make in India’ and Production Linked Incentive (PLI) schemes.
As the global tech industry recalibrates India electronics export sector stands on the cusp of a transformation powered by smart policy, strategic partnerships, and rising global trust.
