India’s smartphone and electronics export sector has received a major boost as the United States excluded several consumer electronics from its reciprocal tariff list, giving India a 20% tariff edge over China. According to the India Cellular and Electronics Association (ICEA), this development will make products like iPhones, tablets, laptops, and smartwatches significantly cheaper when exported from India to the US.
US Exempts Consumer Electronics from Tariffs
The Trump administration’s latest amendment excludes smartphones, tablets, laptops, and select other electronics from the additional tariffs imposed on over 50 countries. While China still faces a 20% tariff on such products, both India and Vietnam currently have zero tariff for these categories, offering a competitive edge over Chinese exports.
ICEA Chairman Pankaj Mohindroo confirmed that India’s zero-tariff access to the US market for these products positions it favourably. “India and Vietnam are similarly placed and enjoy a 20% tariff advantage over China,” he said.
India’s Electronics Exports on the Rise
The US had earlier raised concerns over Apple’s production plans in China and India under the reciprocal tariff regime, especially with iPhones. However, with the exemption in place, Apple’s India operations remain unaffected, further solidifying the country’s growing status as a global manufacturing hub.
Mobile phone exports from India hit a record ₹2 lakh crore in 2024–25, a 55% increase over the previous year. Notably, iPhones accounted for ₹1.5 lakh crore in exports alone. ICEA expects this growth trajectory to continue, thanks to a stable supply chain and increasing predictability in global trade.
Experts See Strategic Opportunity for India
Industry leaders are optimistic about the long-term prospects. Semiconductor and electronics body IESA President Ashok Chandak said the tariff exemption offers a significant reprieve and a timely opportunity for India to expand its share in the global electronics value chain. “With the US importing over $250 billion worth of smartphones and computers, and 30% still coming from China, India—currently at $12 billion—has massive room to grow,” he added.
Analysts echoed similar views, suggesting that while the US-China trade tensions persist, India is well-positioned to attract global manufacturers looking to diversify supply chains. Techarc’s Chief Analyst Faisal Kawoosa said, “This means business as usual for brands like Apple in India, which will only grow further.”
Also read: US Tariffs to Have Limited Impact on Indian Exports: Crisil
Meanwhile, CyberMedia Research’s Prabhu Ram noted that the tariff exemptions will ease pressure on global tech giants, helping reduce friction in the interconnected electronics supply chain. However, he cautioned that the broader direction of US-China trade policy remains uncertain.
Counterpoint Research’s Neil Shah added, “Bringing back the manufacturing of smartphones to the US is a marathon, not a sprint. India has the edge now, and this development strengthens its position.”
