India Faces Prospects Of Electronics Export Losses Amid US Tariff Plans

(MENAFN- KNN India) New Delhi, Aug 8 (KNN) India's electronics sector could lose between USD 20–30 billion in potential business as the United States prepares to impose higher tariffs on a wider range of products.

Industry experts warn that semiconductors could be next in line, adding to the pressure on exporters.

Smartphones, which form the largest share of India's electronics exports, are likely to be spared from the tariff blow, mainly due to potential exemptions for Apple and Samsung.

Both companies have made major investments in the US and continue to maintain large-scale manufacturing operations in India. However, other categories-such as inverters, chargers, and transformer components-could face significant setbacks.

In 2024–25, India exported USD 14.6 billion worth of electronics to the US, with smartphones alone accounting for USD 10.5 billion, or 72 percent of that total.

India's overall electronics exports for the year stood at USD 38.6 billion, with the US as the largest market (38 percent share), followed by the UAE (9.6 percent), the Netherlands (7.4 percent), and the UK (4.8 percent).

Customs data indicates that nearly USD 4 billion worth of Indian electronics exports to the US-excluding smartphones-will be subject to a steep 50 percent tariff.

This comprises a 25 percent reciprocal tariff and an additional 25 percent secondary tariff, which came into effect on August 27 in connection with sanctions on Russian oil.

While smartphones, tablets, laptops, servers, and certain telecom equipment are currently excluded from the reciprocal tariffs, semiconductors are not yet assured of the same treatment.

The tariff rate for semiconductor products will depend on their composition and classification.

Companies like Motorola, which have increased US-bound shipments from India, could still face duties on semiconductor-related products in the absence of confirmed US investment commitments.

(KNN Bureau)

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