Tata, Foxconn gain; boost for long-term electronics exports

The India-US trade agreement has lifted expectations of greater policy certainty for India’s electronics manufacturers, even as the fine print is awaited and its implications for sector-specific tariffs remain unclear.

- Shouvik Das [e-mail]

Exports of iPhones accounted for over $10 billion, making it a critical export category for India.

(REUTERS)

More than a direct increase in top line, “the trade deal signals policy certainty and stability, and would allow India’s electronics sector to significantly invest in increasing their export capacities, since exports and industrial electronics offer higher margins and growth opportunities,” said Harshit Kapadia, vice-president at brokerage firm Elara Capital.

‘Two companies that stand to benefit from trade clarity is Tata Electronics and Taiwan-based global contract manufacturer Foxconn’s India entities under Bharat FIH Ltd. Both have invested significantly to increase iPhone assembly capacities and to move deeper into the electronics supply chain to generate more value.