New Delhi: Industry leaders expressed optimism on Thursday regarding the development of a well-structured Bilateral Trade Agreement (BTA) between India and the United States, despite the impending implementation of reciprocal tariffs by the US administration scheduled for April 2.
India currently imposes a 16.5 percent basic customs duty (BCD) and surcharge on smartphones and electronics imported from the United States.
Simultaneously, the country is building a robust domestic manufacturing ecosystem by focusing on four interconnected pillars: infrastructure development, technological modernisation, workforce skill development, and strategic market access to drive demand and growth.
Pankaj Mohindroo, Chairman, India Cellular and Electronics Association (ICEA), stated that offering reciprocal zero duty in the potential BTA for smartphones, hearables, wearables, color televisions, consumer electronics, appliances, and lighting, “is not an extraordinary step for us since we already provide that treatment to FTAs with Japan, Korea and ASEAN (Vietnam, Thailand, Indonesia etc.).”
Mohindroo projected substantial growth potential, telling IANS, “The long-term impact of a cautiously optimistic outlook is the ballooning of our electronics exports to the US from the current level of USD 10 billion to USD 80 billion, an 800 percent growth by 2030.”
Regarding semiconductors, industry experts suggest that India is unlikely to experience significant short-term consequences from US tariffs on this sector, as the country is not a major exporter of chips to Washington.
India Electronics and Semiconductor Association (IESA) President Ashok Chandak noted that India’s import duty on semiconductors is already set at zero, eliminating reciprocal tariff concerns in this segment.
Most of India’s upcoming semiconductor manufacturing and Outsourced Semiconductor Assembly and Test (OSAT) facilities are being developed to serve global brands.
As domestic semiconductor demand increases, India plans to rely more heavily on locally manufactured chips, thereby reducing dependence on imports.
Chandak further explained that in the long term, Indian semiconductor brands are not expected to face major disadvantages, as the US tariff is anticipated to apply uniformly to all exporting nations, creating a level playing field in the international market.
