ICEA Claims India's Electronic Exports to US will be 20% Less Expensive than China

The industry group ICEA stated on April 13 that after the Trump administration lifted duties on a variety of consumer electronics, Indian shipments to the US of smartphones, laptops, and other devices are anticipated to become 20% less expensive than those from China. The announcement, which was made over the weekend, is thought to be a significant boon to India's quickly expanding electronics manufacturing industry. Smartphones, tablets, laptops, flat-panel displays, and specific semiconductor components will no longer be subject to the reciprocal tariffs that the US previously placed on nations like China, India, and Vietnam.

Advantage to India and Vietnam Over China

The exemption suggests that when it comes to selling certain goods to the US, India and Vietnam now have a significant tariff advantage over China. The chairman of the India Cellular and Electronics Association (ICEA), Pankaj Mohindroo, pointed out that 20% of iPhones, laptops, tablets, and watches are still made in China. For China, just the reciprocal duty has been eliminated. All smartphones, computers, tablets, and iPhones that are exported to the US are duty-free from India. Additionally, all Samsung and other smartphone, laptop, and tablet exports to the US are duty-free in Vietnam. Therefore, Vietnam and India both have a 20% tariff advantage over China and are subject to similar levies on these goods. After weeks of worrying about possible disruptions in exports, ICEA, which represents big businesses like Apple, Foxconn, and Dixon, said the exemption was a welcome relief. The chairman went on to say that there won't be any more unusual disruptions.

India Becoming a Hub for iPhone Production

According to Union minister Ashwini Vaishnaw, India has become a major location for Apple's production, with iPhone exports alone exceeding INR 1.5 lakh crore in 2024–2025. This year, mobile phone exports totalled over INR 2 lakh crore, a 55% increase over the previous fiscal year. Given the ongoing trade tensions between the US and China, industry insiders think that this most recent development enhances India's position in the global electronics supply chain. The head of the India Electronics and Semiconductor Association (IESA), Ashok Chandak, described the tariff exemption as a major, if potentially temporary, relief for multinational tech producers.

He claimed that although the short-term export frenzy has subsided, India's long-term prospects are still strong. With over $250 billion in electronics imports from the US, of which 30% still originate in China, Chandak went on to say that India has a lot of space to develop from its existing $12 billion base. He went on to say that now is a critical time for Indian companies to expand, refocus their plans, and solidify their place in the global electronics value chains. India needs to put even more effort into creating sustainable, long-term competitive advantages if it hopes to reach its full potential.