Industry Divided Over Hit on India's Electronics Manufacturing Hub Goal

Analysts Believe Trump's Tariffs Will Lead to Talks Globally With the US, Which May or May Not Disrupt the Current Status

- Shouvik Das

U.S. President Donald Trump's announcement of reciprocal tariffs on imports from around the world sparked a sharp division within executives and observers of India's electronics manufacturing industry.

Some said there would be no impact in the long run on India's push to be a global electronics manufacturing hub. But others were concerned about setbacks to India's ambitions, and suggested that if Trump's tariffs sustain, India could lose some of its impetus to countries with lesser taxes to the U.S., such as Brazil.

They said this is particularly relevant considering the growing importance of India as a manufacturing hub for companies like Apple, and other tech firms looking to diversify from China to, potentially, India.

Atul Lall, managing director and CEO of Dixon Technologies, India's largest contract manufacturer, said the primary focus of Indian EMS (electronic manufacturing services) firms is the domestic market, which is unaffected. "But it needs to be seen how companies go about setting up footprints back in the U.S.," Lall said. "The big change will be in how U.S. consumers will be serviced in terms of access to electronics."