New Delhi, Feb 3 (PTI) The agreed 18 per cent duty rate on exports from India to the US maintains India's attractiveness as a global manufacturing and export hub, mobile industry body ICEA said on Tuesday.
India and the US agreed to a trade deal under which Washington will bring down the reciprocal tariff on Indian goods to 18 per cent from the current 25 per cent.
"This is a positive and competitive outcome for India. At the agreed 18 per cent rate, India remains well placed relative to key manufacturing peers, and retains its attractiveness as a global manufacturing and export hub.
"While we await the finer details of the deal, the direction clearly supports India's strategy of scaling manufacturing and integrating deeper into the US-led global value chains, particularly in electronics," ICEA chairman Pankaj Mohindroo said in a statement.
According to sources, electronics products, including mobile phones, semiconductors continue to remain exempted from tariffs.
In the financial year 2025, India's electronics production grew about 19 per cent to Rs 11.3 lakh crore, exports rose 37.5 per cent to Rs 3.3 lakh crore dominated by mobile phones especially iPhones.
The mobile manufacturing segment witnessed a nearly 30-fold increase in production value, rising from Rs 18,000 crore in FY15 to Rs 5.45 lakh crore in FY25.
iPhone exports from India have hit Rs 2.03 lakh crore in 2025, which is almost double that of Rs 1.1 lakh crore Apple exported in the calendar year 2024.
Most of the iPhones from India are exported to the US.
Mobile phone production in the country is expected to reach about Rs 6.76 lakh crore, comprising exports over USD 30 billion, or about Rs 2.7 lakh crore, by the end of the current fiscal year.
As per the initial agreement, all imports in India from the US will be at zero per cent duty.
India Cellular and Electronics Association, whose members include Apple, Foxconn, Dixon, Vivo, Xiaomi, said that the outcome of the agreement reflects the steady leadership of the Prime Minister, Commerce and Industry Minister, and the Commerce Secretary, who have navigated complex negotiations with clarity and finesse.
"We see strong potential for expanded technology collaboration and envision electronics trade reaching USD 100 billion within the broader USD 500 billion India-US trade ambition," Mohindroo said.
In a late night social media post, Union Electronics and IT Minister Ashwini Vaishnaw had said as world's largest democracies and natural allies, India and US have huge potential to work for peace and development.
"The US and India have complementary strengths. Both countries can co-create technologies and co-develop solutions that will benefit the world. Trade deal between the US and India will lead to a brighter future for both countries. India-US Trade deal is a win-win deal. Citizens and industries of both countries will benefit greatly from this deal," Vaishnaw said. PTI PRS DR
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