India to Earn Big as US Tariffs Hit China: The continuing trade war between China and the US has given a very profitable window of opportunity to India. With changing trade policies and emerging priorities, India stands to increase its exports of smartphones, particularly to the US market. The move can strongly assist India’s economy and local companies without announcing major details in advance.
India Gets Edge as US Lifts Tariff on Smart Devices
Tariff war has broken out between the US and China. The US government has imposed a 145% tariff on Chinese goods, to which China responded with a 125% counter-tariff. During this time, the Trump administration has waived back-and-forth tariffs on phones and other electronic items. This is highly favorable to India as phones being shipped from India to the US would now be 20% lower than China.
The US recently exempted smartphones, laptops, tablets, and other electronic items from new tariffs. According to the India Cellular and Electronics Association (ICEA), this action gives India an advantage. Chinese exports continue to receive 20% tariffs on items such as iPhones, laptops, tablets, and watches. Indian exports to the US are now duty-free, as are Vietnam’s. The change may boost India’s export quantities and profitability.
India’s iPhone Export Figures Continue to Rise
ICEA is made up of big smartphone producers such as Apple, Foxconn, and Dixon. High smartphone production, mostly iPhones, has created mass-scale job opportunities in India. With China on the radar of tariff constraints, India will witness a dramatic spike in exports, and it will become a favorite in the global market. India is already a mass-scale iPhone exporter to the US.
Smartphone Export Touches Two Lakh Crore Rupees
India’s mobile phone export for 2024-25 touched ₹2 lakh crore, an increase of 55% over ₹1.29 lakh crore in 2023-24, as per ICEA. iPhone alone contributes ₹1.5 lakh crore of exports. The increase is a record and reflects India’s growing position in the international smartphone supply chain.
New Smartphone Manufacturing Job Opportunities
With growing exports, the manufacture of smartphones is growing rapidly in India. This growth is generating more jobs, especially in the states where the factories and assembly units are located. As global demand is growing, the companies are growing hiring and growing their production unit.
Vietnam Also in the Race but India Ahead
Vietnam, like India, does not have a tariff on export of smartphones to the US, but India has more widespread local manufacturing and has set up established export channels with leading brands. Domestic capacity of production, support from the government, and country’s trained human resource place it ahead of Vietnam in long-term gains from this shift in trade.