New Delhi, Apr 8 (KNN) India’s tech hardware sector is poised to gain a competitive edge as the United States imposes significant tariffs on electronics imports fr0m key countries.
According to a recent report by leading capital markets and investment group CLSA, the resulting shift in global supply chains could particularly benefit India’s smartphone manufacturing segment.
The US has implemented tariffs ranging fr0m 25 per cent to 54 per cent on electronics imports fr0m China, Mexico, and Vietnam, which collectively account for 51 per cent of US electronics imports.
Smartphones represent a substantial USD 51 billion worth of imports for the US, with China, Vietnam, and India serving as key source countries, CLSA noted.
Several prominent smartphone brands including Apple, Samsung, and Motorola have already established assembly operations in India.
With China facing a 34 per cent tariff and Vietnam 46 per cent, India’s relatively lower tariff of 26 per cent may significantly alter supply chain dynamics, according to the brokerage.
India’s advantage extends beyond lower tariffs, as its large domestic market and increasing backward integration supported by the Production Linked Incentive scheme further enhance its cost competitiveness.
Dixon Technologies is identified as a likely key beneficiary of this shift, having established relationships with major brands such as Motorola, Google, and Nokia.
While Apple and Samsung operate assembly either in-house or with companies not listed in India, Dixon’s role in the supply chain is expected to expand, CLSA reported.
However, potential risks remain. A rise in production in Brazil, which faces a lower tariff of 10 per cent, could alter the competitive landscape.
Additionally, bilateral trade agreements, such as Vietnam’s offer to remove all tariffs on US imports, could impact India’s advantage in the evolving global electronics market.
(KNN Bureau)
