India has emerged as a prominent beneficiary of the United States’ latest round of reciprocal tariffs on electronic goods, gaining ground over major exporting countries such as China, Vietnam, Thailand, and Indonesia. The development is being viewed as a major diplomatic win, driven by consistent engagement by Indian negotiators and national leadership.
China now faces combined tariffs ranging from 54% to 79%, while Vietnam is subjected to a 44% rate. India’s more favorable tariff treatment creates an opening to expand its electronics exports to the US. Although countries like Brazil and Egypt have secured marginally more favourable terms in some categories, India’s overall strategic position remains considerably stronger.
Call for Bilateral Trade Agreement
Despite the immediate benefits, industry leaders stress that India’s long-term success in the US electronics market depends on establishing 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).
Experts urge swift and decisive action, combining trade diplomacy, domestic reforms, and industrial resilience to sustain India’s competitive edge.
“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,” noted Ashok Chandak, President of the India Electronics and Semiconductor Association (IESA).
Both India and the US have previously set a target of expanding bilateral trade to $500 billion, providing a strong basis for a mutually beneficial agreement.
Key Sectors Remain Exempt
Significantly, semiconductors and pharmaceutical products have been excluded from the latest tariff measures, recognising their importance in maintaining global supply chains and public health. India’s relatively low import volumes of US electronics also provide the flexibility to adjust tariffs with minimal disruption to domestic markets.
Expanding Global Presence
Analysts stress that India must act decisively to convert this strategic opportunity into long-term gains. This includes bolstering its global footprint in electronics and ensuring deeper integration with international supply chains.
“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,” Chandak added.
Mohindroo warned that with possible retaliatory tariffs from other economies, India must aim for sustained export growth backed by resilient supply chain participation.
Prabhu Ram, VP at CyberMedia Research, added, “To fully capitalize on this shift, India must advance strategic policy initiatives that enhance its attractiveness and deepen integration into global value chains.”
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