Ahead of Prime Minister Narendra Modi’s meeting with US President Donald Trump this week, the electronics industry said policy measures such as Press Note 3 and Production Linked Incentive (PLI) schemes have created strong opportunities for US firms to participate in the Indian market in a non-Chinese supply chain environment.
Separately, it sought reciprocity from the US through favourable trade concessions, deeper technology partnerships, and a willingness to import more from India, especially in electronics in a bid to reshape global supply chains.
The industry, in a letter to the commerce ministry, noted India’s import of integrated circuits (ICs) from the US soared more than fourfold to $505.21 million this fiscal year as of November, from $105.46 million in FY24, while smartphones have emerged as India’s top export commodity to the US, aided by the PLI scheme in mobile phone manufacturing. They added that with India’s strategic pivot away from Chinese suppliers, there is further scope to scale up imports of US semiconductors, and in parallel, export more finished electronics to the US.
“The Trump administration presents an opportunity for us to expand exports to the US to a level of $500 billion and overall trade to $750 billion by 2032. This is a very crucial time wherein many critical decisions will be made by the Trump administration and India should put forward its best foot,” according to the letter.
ET has seen a copy of the letter.”Shifts in global supply chains since the US imposed tariffs on Chinese goods in 2018 have reduced China’s direct exports of electronics to the US. However, many Chinese firms have relocated production to Vietnam, Taiwan, and Mexico, retaining a Chinese-centric supply chain. India stands out as the alternative that not only moves assembly out of China geographically but also delinks from Chinese ownership structures-a crucial distinction that can protect the US from indirect Chinese dependencies,” the letter noted.
Content Source: economictimes.indiatimes.com