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Industry sees India better placed than China, Vietnam on electronics

Financial Express Lucknow

|

April 04, 2025

With the US imposing a 27% reciprocal tariff starting April 9, India finds itself in a favourable position compared to competitors like Vietnam (46%), Thailand (36%), and China (54%—34% reciprocal plus an additional 20%).

- URVI MALVANIA & RISHI RAJ

However, it faces challenges from manufacturing powerhouses such as Turkey, Brazil, and the Philippines, where duties are significantly lower at 10%, 10%, and 17%, respectively.

Analysts emphasise that India's long-term success hinges on securing a robust bilateral trade agreement (BTA) with the US, as other countries are also expected to initiate similar negotiations.

In the electronics and smartphone sectors, India's edge is clear. Vietnam and Thailand, key manufacturing hubs for global giants like Samsung and Apple, face steep tariffs that erode their cost competitiveness. India's 27% tariff, coupled with the production-linked incentive (PLI) scheme, positions it as an attractive alternative.

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