By Admin 
India US Trade Deal: The signing of the long pending trade deal between India and America is being considered a game changer in terms of electronics manufacturing. Experts say that the share of electronics sector in the total bilateral trade proposed between the two countries of $500 billion can reach about $100 billion in the coming years. However, the industry is currently waiting for the detailed provisions of this agreement, i.e. the fine print, because these will make it clear how the rules related to tariffs, non-tariff barriers, supply chain and investment will be implemented in practice.
After several months of intense negotiations, US President Donald Trump formally announced this trade deal late on Monday night. He said that this agreement will come into effect with immediate effect and the total heavy tariff imposed on India from 50 percent has been reduced to 18 percent. This decision has brought great relief to Indian exporters, especially those sectors which were lagging behind in competition due to high duties for the last two years. Electronics manufacturing is also included in these sectors, where the position of Indian products in the American market had weakened due to increase in costs.
Picture of electronics sector will change
India’s electronics industry has grown rapidly in the last few years and has become an important pillar of the government’s ‘Make in India’ and ‘PLI Scheme’. India’s presence in smartphones, consumer electronics, semiconductor assembly and component manufacturing is continuously increasing. In the financial year 2024-25, India exported electronics worth about Rs 3.27 lakh crore or about $38 billion, in which America was the largest market for Indian exporters. After the reduction in tariffs, it may become easier for Indian companies to increase their stake in America and become an important part of the supply chain there.
This trade deal has come at a time when India is working on a comprehensive global trade strategy. While the emphasis has been laid on promoting domestic manufacturing and investment in Budget 2026, India is also pursuing free trade agreements with the UK, European Union and other countries. This agreement with the US can further integrate India into the global value chain, especially in strategic sectors like electronics, technology and supply chain resilience.
American industry and think tanks have also openly welcomed this agreement. Suzanne Clark, President and CEO of the US Chamber of Commerce, said American and Indian businesses had been waiting for such a move for a long time and the announcement of reducing tariff and non-tariff barriers will benefit companies and workers in both countries. He also praised the role of President Donald Trump and Prime Minister Narendra Modi as well as officials of both the countries.
Big opportunities will be created
Wendy Cutler, senior vice president of Asia Society Policy Institute and former US Trade Representative, said that this announcement has definitely brought relief to Indian partners, because India was facing higher tariffs than any other country. According to him, this agreement will pave the way for America and India to work together on important issues like critical minerals, technical cooperation and supply chain resilience. However, he also clarified that at present the agreement has been announced through a social media post and only after its detailed provisions are revealed, it will be completely clear how much and what kind of real benefit it will give to electronics manufacturing and other sectors.
Also read: Those 4 big conditions! After which President Trump approved the trade deal with India