Indian Electronics Industry at a Crossroads

With the US imposing steep new tariffs reminiscent of the Great Depression era, Indian electronics exporters are urgently exploring alternative markets in Europe, the Middle East, and Africa. This strategic pivot comes as the US, historically the largest buyer of India's electronics, becomes increasingly challenging due to tariff hikes and shifting content-origin rules.

Exporters Adapt to New Realities

Sanjay Agarwal, managing director of Globe Capacitors, shared insights into the proactive measures being taken, including controlling purchases and scouting for new markets. "I have already controlled my purchases, especially for the materials I buy only for US customers," Agarwal noted, highlighting the industry's resilience and adaptability.

Exemptions Under Review

While current exemptions protect a significant portion of India's electronics exports from the new tariffs, including smartphones, these are under review. The outcome of a US commerce department investigation could redefine the landscape for Indian exporters, with findings expected shortly.

Exploring New Markets

Industry leaders like Rajoo Goel and Amrit Manwani emphasize the importance of diversifying export destinations. "Exporters should explore Europe, Australia, South East Asia, and given the geopolitical realignment, even Russia," Manwani advised, pointing to the vast opportunities beyond the US market.

The Path Forward

As Indian electronics firms navigate these turbulent times, the focus shifts to building demand resilience and expanding into untapped markets. The current scenario presents a unique opportunity for India to strengthen its global presence in the electronics sector.