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The trade deal expands India’s electronics exports, improves semiconductor services, MSME growth, foreign investment, and global technology supply chain presence.
India's technology industry is buzzing about the export growth of electronic products resulting from the Indian trade deal with the United States. Experts in the industry believe that it will facilitate manufacturing for small to medium businesses (MSMEs) worldwide and possibly open up new international markets for Indian firms. Amrit Manwani, Chairman of the Sahasra Group, said that the deal enables MSMEs to better understand the demand for electronics hardware from the U.S. and enhances India’s presence on the global electronics value chain.
Vice-Chairman of the Electronics and Computer Software Export Promotion Council (ESC), Rajesh M. Revankar, noted this as a great opportunity for India to expand its electronic export market into the US. He stated that the reduction of tariffs and an increasing amount of bilateral trade agreements between the two countries will enable India to excel in certain high-value sectors including designing chips and creating intellectual property (IP), as well as developing the architecture for semiconductors. Additionally, he expects the agreement will lead to an increase in foreign direct investment (FDI) in the area of designing semiconductors as well as in advanced packaging and help attract companies that will conduct their R&D as well as manufacturing centers for semiconductors in India.
India's electronics exports currently consist primarily of smartphones; however, Revankar believes that the agreement will help improve electronic exports of semiconductor backend services and ATMP and OSAT services. He said that producing numerous components within India, in addition to having a strong supplier base of businesses overseas, will position India to have a stronger presence throughout the global supply chain. This is a major step toward positioning India as a global leader in semiconductor design and export capabilities while creating new opportunities for growth, investment, and innovation in the sector.
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