New Delhi
The US has imposed tariffs on most countries including India, China. In such a situation, electronic companies are expected to suffer a lot of damage. This loss can be more for Chinese companies. Because America has imposed more tariffs on China than other countries. In such a situation, Chinese companies can move towards India, due to which Chinese companies have to suffer less losses of US tariffs. This decision can be like Russia’s decision, in which Russia made India a trade route to avoid American ban. This caused Russia to suffer less of the US ban. China is also advancing this plan.
What is China’s plan?
According to the report, the American tariff has forced Chinese electronics companies such as Higher, Lenovo and Hike to change its business strategy. All these Chinese electronic brands are preparing for manufacturing in India, so that electronic products can be supplied to other countries including the US from India. Let us know that the tariff in India is less than that of China and Vietnam.
India-China border tension
Chinese companies are confident that the Government of India can exempt the rules of electronic manufacturing. At present, efforts are underway to improve diplomatic relations between India and China. However, now India needs to take FDI approval from neighboring countries like China. In the year 2020, the border has become difficult between tension.
India will benefit
According to experts, electronic manufacturing in India can be promoted by China. They can be used in the new assembly line in factories in Greater Noida and Pune. According to experts, tariffs can prove beneficial for India. Higher currently exports to America from China and Vietnam.
Contract manufacturing will get a boost
Rajesh Aggarwal of Bhagwati Products, who is a contract manufacturing for Oppo and Vivo smartphones, said that there is more pressure than India in manufacturing in Vietnam and China for the US market. His company is working on a plan to shift American production to India. Trump has imposed a 26% tariff on India, which is less than the rest of the Asian companies.
Product supply will get a boost
Trump has imposed 54 per cent on China, 46 per cent on Vietnam, 36 per cent on Thailand and 32 per cent on Taiwan, which will be applicable from April 9. Chinese brands such as Higher, Hike, Lenovo, Motorola, Oppo, Vivo and TCL are active in America, mostly supplying products from China and Vietnam.
There will be gamechanger for India
Contract manufacturer Dixon Technologies are expected to benefit from tariffs for India. This company makes smartphones for the American market. It had a turnover of Rs 1700–1800 crore in the US in FY25.
According to experts, at present, FDI for Chinese companies relaxes the approval, it can be a game Changer for Indian electronics manufacturing and export.
