How Indian Electronics Makers Are Winning Big from US Tariffs on China

What if trade tensions between global superpowers became a golden opportunity for Indian businesses? That’s exactly what’s happening now. With the U.S. reimposing tariffs on Chinese electronics, Indian manufacturers are quickly stepping up to fill the gap. In this blog, you’ll discover how Indian firms like Dixon and Kaynes are capitalizing on global shifts—and what it means for India’s manufacturing ambitions.

Why the US Tariffs Matter for India

The United States has reinstated high tariffs on a wide range of Chinese-made electronic goods, including:

• Smartphones and laptops

• Consumer electronics like TVs and tablets

• Industrial electronics and semiconductors

Result: U.S. brands are under pressure to diversify supply chains to avoid rising costs and trade disruptions.

 India’s Edge:

• Competitive labor costs

• Government incentives under PLI (Production Linked Incentive) scheme

• Political alignment with the U.S.

This has opened the door for India to become a viable alternative to China in electronics manufacturing.

How Indian Companies Are Grabbing the Opportunity

1. Dixon Technologies – The Contract Manufacturing King

Dixon is now assembling smartphones and TVs for top brands like Samsung, Xiaomi, and Motorola.
New wins: Entry into laptop manufacturing after Apple’s shift of suppliers to India.

2. Kaynes Technology – High-End Electronics

Specializing in IoT and automotive electronics, Kaynes is seeing increased export orders from U.S. and European clients.
Impact: Diversification beyond domestic OEMs into global industrial customers.

3. Foxconn and Pegatron – Taiwan Giants Doubling Down on India

Foxconn is investing billions in expanding its iPhone manufacturing capacity in Tamil Nadu.
Why it matters: Apple’s India shift is encouraging entire supply chains to follow.

4. SMEs in Bengaluru and Noida – The Silent Growth Engines

From PCB makers to chip testers, Indian MSMEs are seeing a demand surge from both global and domestic contract manufacturers.
⚙️ Support from govt: Duty-free imports of certain components and faster clearances.

Bonus Tips – How to Ride the Electronics Boom

DO: Explore opportunities in component supply, testing, and logistics
DO: Leverage government PLI schemes in electronics, wearables, and IT hardware
DON’T: Underestimate the need for quality certifications like ISO, CE, or RoHS

Conclusion

US-China tensions have turned into a silver lining for India’s electronics sector. With timely policy support, skilled talent, and global demand, Indian manufacturers are no longer just the backup—they're becoming the main supply hub.