India US trade deal: Industry sees $100 billion opportunity in electronics and semiconductors

The deal was announced on February 2

• India-US trade deal to boost electronics and semiconductor sectors
• Deal to improve market access, tech flow, and strengthen supply chains
• Over $100 billion trade expected from electronics and semiconductors

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The recently announced India-US trade deal could emerge as a major catalyst for India's electronics, semiconductor and broader technology ecosystem, India Electronics and Semiconductor Association president Ashok Chandak said on February 3.

Chandak, who is also the president of SEMI India said the agreement would significantly enhance India’s position as a global manufacturing and innovation hub.

"The India–US trade deal can be a major catalyst for India's electronics, semiconductor, and technology ecosystem," Chandak said in a statement.

He pointed to improved market access and smoother flow of capital equipment and advanced technologies as key benefits.

He added that when combined with strategic frameworks such as the Initiative on Critical and Emerging Technologies (iCET) and the TRUST initiative, the trade deal could strengthen supply chains and cooperation in high-end technologies.

"It will accelerate semiconductor design and manufacturing, boost electronics value addition, and expand cooperation across AI, data centres, and advanced manufacturing—creating high-skill jobs and positioning India as a strategic and reliable partner in the global technology value chain," he said.

He estimated that of the ambitious $500 billion bilateral trade vision between India and the US, over $100 billion could come from the electronics and semiconductor sectors alone.

" The vision of 500 Bn usd bilateral trade can have over 100 Bn usd trade for electronics and semiconductor sector," he said.

US President Donald Trump on February 2 said the United States will cut reciprocal tariffs on India to 18 per cent from 25 per cent and eliminate non-tariff barriers, while India will reduce its own trade barriers and boost purchases of US energy, technology, and agricultural products as part of a bilateral trade deal.

Echoing similar optimism, on February 2, Union minister Ashwini Vaishnaw described India and the United States as the world’s largest democracies and “natural allies” with complementary strengths.

In a post on X, Vaishnaw said the two countries could co-create technologies and co-develop solutions that would benefit not only their citizens but also the wider world.

“The India-US trade deal is a win-win deal. Citizens and industries of both countries will benefit greatly from this deal,” Vaishnaw said, adding that closer cooperation would contribute to peace, development and long-term economic growth.