The electronics industry is pushing the federal government to additional improve trade ties with the US and increase bilateral trade to $750 billion by 2032 together with $100 billion value of electronics by leveraging present insurance policies and incentive frameworks.
Forward of Prime Minister Narendra Modi’s assembly with US President Donald Trump this week, India’s electronics industry, in a communication to the commerce ministry, stated coverage measures reminiscent of Press Observe 3 and Manufacturing Linked Incentive (PLI) schemes have created sturdy alternatives for US companies to take part within the Indian market in a non-Chinese language provide chain atmosphere.
Individually, it sought reciprocity from the US by beneficial trade concessions, deeper expertise partnerships, and a willingness to import extra from India, particularly in electronics in a bid to reshape international provide chains.
The industry stated India’s import of ICs (built-in circuits) from the US soared greater than fourfold to $505.21 million this fiscal 12 months as of November, from $105.46 million in FY24, whereas smartphones have emerged as India’s high export commodity to the US, aided by the PLI scheme in cell phone manufacturing. They added that with India’s strategic pivot away from Chinese language suppliers, there may be additional scope to scale up imports of US semiconductors, and in parallel, export extra completed electronics to the US.
“The Trump administration presents a chance for us to increase exports to the US to a stage of $500 billion and total trade to $750 billion by 2032. This can be a very essential time whereby many essential selections shall be made by the Trump administration and India ought to put ahead its finest foot,” the industry stated in a letter.
ET has seen a duplicate of the letter.
“Shifts in international provide chains for the reason that US imposed tariffs on Chinese language items in 2018 have diminished China’s direct exports of electronics to the US. Nonetheless, many Chinese language companies have relocated manufacturing to Vietnam, Taiwan, and Mexico, retaining a Chinese language-centric provide chain. India stands out as the choice that not solely strikes meeting out of China geographically but additionally delinks from Chinese language possession constructions-an important distinction that may defend the US from oblique Chinese language dependencies,” the letter famous.
India has additionally systematically barred Chinese language firms from bidding for authorities contracts, permitting US firms to grab the newly-created alternatives.
New Delhi has additionally intentionally excluded main Chinese language manufacturers from the excessive-stakes PLI scheme for giant scale electronics manufacturing, making certain US and different non-Chinese language firms to scale up manufacturing.
To additional strengthen ties between India and the US, the industry sought enhanced market entry for US merchandise by tariff rationalisation and easier laws for essential US exports, alongside encouraging US semiconductor and electronics makers to arrange superior packaging, testing, or fab amenities in India supported by PLI schemes.
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