India’s edge in electronics despite tariffs

Even as countries like Vietnam and Taiwan signal a willingness to reduce import duties to counter new reciprocal tariffs announced by the US, analysts say India remains better placed to safeguard and potentially grow its contract manufacturing base in smartphones and electronics.

The key reason for the same being that India not only faces a lower reciprocal tariff rate under the US framework at 26% compared to Vietnam’s 46% and Taiwan’s 36%, but it also holds an advantage due to its relatively modest trade surplus with the US.