US-India trade deal: Tariff cut reignites export hopes for electronics manufacturers
Kolkata: The Trump administration's move to cut tariffs on Indian goods has reignited hopes among homegrown electronics manufacturers of enhancing exports to America, with senior industry executives saying the US could potentially become one of their largest export markets.
They noted that the reduced 18% tariff has placed India in an advantageous position compared to other Asian nations competing for contract manufacturing.
Dixon Technologies, India's largest contract manufacturer, is looking to start exports of LED lighting products, washing machines, and telecom devices to the US post the tariff cut. Managing director Atul Lall told ET, "We were already in talks with multiple potential clients in the US."
"The reduction is an extremely positive thing and will make Indian manufacturing competitive vis-a-vis Vietnam. Even for already duty-free exports like smartphones and laptops, this sends a positive signal that India will be at a better place even if tomorrow tariff is levied on these products," he added. Compared to India, the US headline tariff on other production hubs are 34% on China, 20% on Vietnam, 19% on Thailand, and 15% on South Korea.
Havells India CMD Anil Rai Gupta said exports of its namesake brand of cables to the US had stopped after the tariffs rose to 50%, but are now poised to make a sharp recovery. "We are very bullish now," he said. "Last year, we did over ₹100 crore exports to the US, but after the tariff increase, it had gone down to zero. With the reduction, we expect ₹500 crore exports in the next two years."
The company also plans to export air-conditioners to the US.
AC manufacturer Blue Star was undertaking field trials for exporting to the US through contract manufacturing, which came to a "standstill" after the duty hike.
Managing director B Thiagarajan said that with the tariff cut, Blue Star can scale up exports. "Orders were not cancelled but on low volume as everyone was expecting tariffs to normalise in a few months... It was a long wait, but now things are looking up."
Dixon produces smartphones in India for Motorola, which are exported to the US, while Samsung ships phones from its plants here.
They noted that the reduced 18% tariff has placed India in an advantageous position compared to other Asian nations competing for contract manufacturing.
Dixon Technologies, India's largest contract manufacturer, is looking to start exports of LED lighting products, washing machines, and telecom devices to the US post the tariff cut. Managing director Atul Lall told ET, "We were already in talks with multiple potential clients in the US."
"The reduction is an extremely positive thing and will make Indian manufacturing competitive vis-a-vis Vietnam. Even for already duty-free exports like smartphones and laptops, this sends a positive signal that India will be at a better place even if tomorrow tariff is levied on these products," he added. Compared to India, the US headline tariff on other production hubs are 34% on China, 20% on Vietnam, 19% on Thailand, and 15% on South Korea.
Havells India CMD Anil Rai Gupta said exports of its namesake brand of cables to the US had stopped after the tariffs rose to 50%, but are now poised to make a sharp recovery. "We are very bullish now," he said. "Last year, we did over ₹100 crore exports to the US, but after the tariff increase, it had gone down to zero. With the reduction, we expect ₹500 crore exports in the next two years."
The company also plans to export air-conditioners to the US.
AC manufacturer Blue Star was undertaking field trials for exporting to the US through contract manufacturing, which came to a "standstill" after the duty hike.
Managing director B Thiagarajan said that with the tariff cut, Blue Star can scale up exports. "Orders were not cancelled but on low volume as everyone was expecting tariffs to normalise in a few months... It was a long wait, but now things are looking up."
Dixon produces smartphones in India for Motorola, which are exported to the US, while Samsung ships phones from its plants here.
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