India's Electronics Industry Raises Alarm Over Rising Competition From Saudi Arabia, UAE

(MENAFN- KNN India) New Delhi, Apr 4 (KNN) The Indian electronics industry has expressed concerns over growing manufacturing competition from countries like Saudi Arabia and the UAE, warning that their emerging industrial sectors could pose significant threats to India's export market.

The India Cellular and Electronics Association (ICEA), representing major manufacturers such as Apple, Dixon, Motorola, Xiaomi, Lava, and Foxconn, has urged the Indian government to closely monitor these developments.

Rather than imposing reciprocal tariffs, the association has advocated for diplomatic negotiations to protect India's trade interests.

Several countries, including Brazil, Turkey, Saudi Arabia, the UAE (each at 10 per cent), and the Philippines (17 per cent), have secured significantly lower tariff rates than India.

ICEA identifies Saudi Arabia and the UAE as immediate challenges due to their Special Economic Zones (SEZs), competitive manufacturing frameworks, and potential labor-cost advantages.

Despite historical trade barriers, Brazil's preferential tariff treatment further complicates India's competitive positioning, requiring strategic vigilance.

ICEA has emphasised the need for continued intensive negotiations, aligning industry and government interests to leverage existing U.S. trade provisions.

It referenced the U.S. Executive Order, particularly Section 4(c), which permits increased tariffs in response to retaliatory measures.

The association has advised against reciprocal tariff hikes, instead favouring diplomatic engagement to ensure long-term stability in trade relations.

The U.S. administration's recent 27 per cent reciprocal tariff announcement follows progress in bilateral trade discussions with India.

While India's current tariff strategy demonstrates effective diplomatic efforts, ICEA believes further reductions are possible through sustained negotiations and strategic engagement.

The association's recommendations aim to safeguard India's electronics manufacturing sector while ensuring continued trade growth amid global market shifts.

(KNN Bureau)

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