India has emerged as a key beneficiary in the first round of reciprocal US tariff announcements, positioning itself ahead of major electronics-exporting nations like China, Vietnam, Thailand, and Indonesia, according to industry experts. The development follows sustained diplomatic efforts by Indian negotiators and leadership.
With China facing combined tariffs of up to 54-79% and Vietnam at 44%, India’s relatively better tariff positioning presents a valuable window to expand its electronics exports to the US. While some nations, such as Brazil and Egypt, have secured marginally better tariff outcomes, India’s strategic advantage remains significant in the evolving trade landscape.
**Call for a Bilateral Trade Agreement (BTA)**
Despite the current advantages, experts stress that India’s long-term electronics trade prospects with the US hinge on a Bilateral Trade Agreement (BTA).
“The BTA must now be the cornerstone of our trade strategy, unlocking stable market access, tariff predictability, and a framework for scaling high-value electronics exports,” said Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association (ICEA).
India must act swiftly, leveraging trade diplomacy, domestic policy shifts, and industrial resilience to safeguard its competitive edge, experts emphasized.
“Negotiating a bilateral trade deal could ease pressure while adjusting import tariffs on select US goods may help maintain trade balance. India could adopt a dual-track approach—balancing negotiations with countermeasures to protect its economic interests,” said Ashok Chandak, President of the India Electronics and Semiconductor Association (IESA).
Both nations share a common goal of expanding bilateral trade to $500 billion, presenting opportunities for a mutually beneficial agreement.
**Semiconductors, Pharma Sectors Remain Untouched**
Notably, semiconductors and pharmaceuticals have been spared from the new tariffs, given their critical role in global supply chains and public health. Additionally, India’s low electronics imports from the US provide flexibility for tariff adjustments, ensuring trade stability.
**Strengthening India’s Global Electronics Footprint**
Experts emphasize that India must respond proactively with swift action, strategic planning, and strong negotiations to solidify its trade position.
“IESA remains committed to working closely with the Ministry of Electronics and IT and the Ministry of Commerce and Industry to develop strategies that minimize risks and strengthen India’s global competitiveness,” said Chandak.
“With potential retaliatory moves from other major economies on the horizon, India must focus on converting this strategic advantage into sustained export growth and deeper supply chain integration,” added Mohindroo.
As the global supply chain realigns in response to US policy shifts, India has an opportunity to further integrate into global electronics markets.
“To fully capitalize on this shift, India must advance strategic policy initiatives that enhance its attractiveness and deepen integration into global value chains,” said Prabhu Ram, VP-Industry Research Group, CyberMedia Research (CMR).
With the right policy moves and trade negotiations, India stands poised to emerge as a dominant player in the global electronics sector while strengthening its economic ties with the US.
(With IANS inputs)