Trump's Potential Second Term Could Propel India's Electronics Manufacturing

Donald Trump’s upcoming second term as US president may enhance India’s growing electronics manufacturing sector since Washington is likely to establish a tariff barrier to restrict Chinese imports from entering consumer markets, prompting sourcing managers to seek alternatives beyond the existing factory to the globe.

With imports from China caught in tariff nets, the electronics sector anticipates a significant portion of production moving to other nations, such as India.

Trump, who was inaugurated as the 47th President of the US on Wednesday, is likely to add smartphones and laptops to the category of goods that incur a significant 25% anti-dumping duty if brought in from China. Throughout his election campaign, he has repeatedly emphasized high import tariffs from China.

"Trump's victory will open up new avenues for India," said Atul Lall, Managing Director, Dixon Technologies. Lall said large companies will make India a prominent manufacturing base for their global supply chains.

Dixon Technologies, benefiting from the Centre’s production-linked incentive (PLI) scheme for mobile phones and IT hardware, produces for nearly all major mobile phone brands and will soon begin manufacturing IT hardware products.

"Right now, electronics and smartphone manufacturing are mainly for the domestic market, and exports are dominated by Apple and Samsung. If there are tariff barriers imposed on China, it will open up floodgates for Indian manufacturing and exports," said Lall.