Strategic Pivot: India's Window to Attract Electronics Manufacturing

The US has enacted a 90-day pause on reciprocal tariffs, creating a significant opportunity for India to attract electronics manufacturing investments. With the looming threat of increased tariffs on China, India is urged to leverage this period to enhance its global competitiveness and secure foreign investments.

The United States' decision to implement a 90-day reprieve on reciprocal tariffs presents a strategic opening for India. This pause offers India a vital chance to attract electronics manufacturing investments, especially from companies seeking to diversify their production hubs away from China.

President Donald Trump's announcement marks a shift, following months of escalating tariffs that destabilized global markets. Although he intends to increase tariffs on China to 125 per cent, other countries will revert to a 10 per cent baseline, offering India a competitive edge.

Industry leaders, including Pankaj Mohindroo, Chairman of the India Cellular and Electronics Association, stress the urgency for India to act swiftly to capitalize on this opportunity. Delays might lead to companies choosing alternative locations, such as Vietnam. The industry remains committed to supporting government efforts to position India as a prime investment destination.

(With inputs from agencies.)