“The recent decision by the Trump administration to exempt smartphones, computers, and other electronics from reciprocal tariffs offers a significant—albeit possibly short term—reprieve for global technology manufacturers and US consumers. While this move signals a tactical recalibration rather than a shift in broader trade policy, it is nonetheless a welcome development in terms of easing short-term supply chain disruptions, geopolitical tensions and US consumer resentment.

According to Ashok Chandak, President IESA Continued underlying tensions and uncertainties may prompt global players to diversify their manufacturing base—creating a timely opportunity for India to emerge as a preferred alternative. Despite the dampening of near-term export euphoria, the long-term opportunity for India remains robust. With the U.S. importing over $250 billion worth of Smartphones and Computer goods—30% of which currently come from China—India, with exports currently at $12 billion, still has significant headroom to grow. As such, For Indian businesses, this is a vital window to scaleup operations, reorient strategies, and strengthen their position in global electronics value chains

To fully realize this potential, India must double down on building long-term, sustainable competitive advantages. The government’s continued support through initiatives like the Production-Linked Incentive (PLI) for components, the Semicon India Program, Product Creation focus, DLI for Semicon startups, EMC’s and favourable state policies are timely and critical. Indian corporates investing in this sector must stay the course and scale up.

*Two immediate focus areas could be:

1. Advancing a Bilateral Trade Agreement (BTA), as both nations aspire to grow trade to $500 billion ( earlier the better ) , and
2. Fast-tracking negotiations and execution of large-scale electronics manufacturing contracts by Indian EMS players and global EMS players operating in India with US based / Global companies. ( As migration of Manufacturing in US will still take time).

India must seize this strategic pause as an opportunity to entrench its role as a reliable and competitive global electronics manufacturing hub.”