India better off than key export rivals China, Vietnam: ICEA on US tariffs

The imposition of 27 per cent tariffs by the US still positions India more favourably compared to electronics export rivals like China, Vietnam, and Indonesia, as these nations face even higher rates, according to the India Cellular and Electronics Association (ICEA).

That said, the true long-term inflection point for India's electronics trade with the US will hinge on the successful conclusion of a bilateral trade pact, the industry body said. 

The comment assumes significance as the US has slapped a 27 per cent tariff on imports from India.

 

"While some countries like Brazil and Egypt enjoy marginally better tariff outcomes, India's positioning, particularly with China and Vietnam facing combined tariffs of up to 54-79 per cent, (China) and Vietnam at 46 per cent offers a valuable near-term window of export competitiveness," Pankaj Mohindroo, Chairman of ICEA said.

He, however, added in the same breath that "the true long-term inflection point for India's electronics trade with the US will rest on the successful conclusion of a Bilateral Trade Agreement (BTA)".

ICEA asserted that BTA must now become the cornerstone of trade strategy, unlocking stable market access, tariff predictability, and a framework for scaling high-value electronics exports.

"India has emerged favourably placed in the first round of reciprocal tariff announcements, especially compared to key electronics export competitors like China, Vietnam, Thailand, and Indonesia following the extraordinary and relentless efforts by our negotiators and leaders," Mohindroo further added.

"As we await possible retaliatory moves from other major economies, our deepest focus must remain on converting this strategic opening into sustained export growth and supply chain integration," he said.