Dixon in talks with Motorola, Trump tariffs give India edge over China, Vietnam, says Atul Lall

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India has a competitive advantage over China and Vietnam following the US’s rollout of reciprocal tariffs, Dixon Technologies managing director Atul Lall said on April 3.

The electronics manufacturing firm expects a Rs 1,700-1,800 crore exposure to the US market in FY25. It is engaging with its partners, particularly Motorola, to assess potential impacts and strategise for the coming days.

“I was very skeptical about how Vietnam, Thailand and others would be treated but in comparison, we, as a country, are in a better position. It looks positive for us,” Lall told Moneycontrol.

“We've only been in deep discussion with Motorola in the last few months, we have been trying to map out a scenario. They have a global footprint, and we are the largest one.” he added.

Earlier, US President Donald Trump unveiled tit-for-tat tariffs at a White House event. Holding up a chart as he addressed media, Trump announced a 26 percent levy on Indian imports.

The US has slapped a 34 percent duty on China, 46 percent on Vietnam, 36 percent on Thailand and 32 percent on Indonesia.

Dixon is a key beneficiary of the production-linked incentive scheme, exporting smartphones worth Rs 1,700-1,800 crore to the US, primarily for its customer, Motorola.

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Lall said the company expects Rs 4,500-5,000 crore in revenue from exports to the US this fiscal, primarily through its order book from Motorola. It expects higher than the 35 percent growth rate it saw last year.

Lall said India must continue to work towards deepening the value addition with the component manufacturing ecosystem to bring down costs and remain competitive.

The 26 percent reciprocal tariff on India is much lower than the tariffs on China and Vietnam, which face combined tariffs of up to 54-79% (China) and 46 percent (Vietnam), making Indian exports relatively competitive.

According to the India Cellular and Electronics Association (ICEA), India has fared well in the initial round of tariff adjustments and emerged favourably placed in the first round of reciprocal tariff announcements, especially compared to key electronics export competitors such as China, Vietnam, Thailand, and Indonesia, following the extraordinary and relentless efforts of “our negotiators and leaders”.

While some countries such as Brazil and Egypt enjoy marginally better tariff outcomes, India’s positioning offers a valuable near-term window of export competitiveness.

“However, the true long-term inflection point for India's electronics trade with the US will rest on the successful conclusion of a Bilateral Trade Agreement (BTA),” ICEA chairman Pankaj Mohindroo said.