ICEA bats for zero-duty on US electronics, cites similar arrangement with Japan, Korea and others

Electronics India

The India Cellular and Electronics Association (ICEA) has said offering zero-duty for key electronics categories to the US would not be new, as India has a similar arrangements with Japan, Korea, and ASEAN.

ICEA, which represents Apple, Foxconn, Dixon and Chinese smartphone makers, also expressed optimism over the US and India sealing a string bilateral trade agreement (BTA).

The comments come at a time when there is a growing concern over US President Donald Trump’s threat of slapping tit-for-tar tariffs against India and other countries from April 2.

“Granting reciprocal zero duty in the agreement for key electronics categories is not a new approach for India, as we already provide similar treatment in our FTAs with Japan, Korea, and ASEAN countries like Vietnam, Thailand, and Indonesia,” said ICEA chairman Pankaj Mohindroo said, referring to free trade agreements with these countries.

The industry body has urged the government to extend zero-duty benefits in the potential agreement for smartphones, hearables and wearables, colour televisions, consumer electronics, appliances, lighting, and other related products.

According to Mohindroo, such an arrangement can boost India’s electronics exports to the US, from the current $10 billion to $80 billion by 2030 —an 800 percent growth.

India and the US are in talks to finalise the first phase of the multi-sector BTA by the fall of 2025.

The electronics industry also urged the government to eliminate tariffs on smartphones, wearables and consumer electronics imported from the US, which does not pose an immediate manufacturing competition in these segments.

As reported by Moneycontrol on March 5, ICEA submitted its recommendations to commerce secretary Sunil Barthwal on March 1.

The proposal calls for a zero tariff on US imports of smartphones, IT hardware, servers, televisions, air conditioners, telecom products and other consumer electronics.

The move is aimed at pre-empting retaliatory tariffs on smartphone exports, which are among the fastest-growing product categories. A tariff-free access to the US will help India stay competitive, particularly against China and Vietnam, the industry has said.

India imposes a 16.5 percent basic customs duty (BCD) and surcharge on American smartphones and electronics. A reciprocal duty will reduce India’s cost advantage and hinder its manufacturing competitiveness.

The proposed zero-duty structure is expected to support India’s broader ambition of reaching $50 billion in smartphone exports and $80 billion in overall electronics exports to the US, aligning with the nation’s $500 billion electronics production goal.

“We must develop a cohesive strategy to integrate with US supply chains and establish India as a preferred electronics manufacturing hub—especially for smartphones, IT hardware, wearables, air conditioners, and consumer electronics,” Mohindroo said.