US-India Trade Deal Boosts Electronics, Semiconductor Manufacturing Outlook

• The US will cut tariffs on Indian goods to 18% from 50%, and India will ease trade barriers and increase imports of US energy, technology, and agricultural products.
• The agreement significantly reduces systemic trade risk, strengthens supply chain confidence, and enhances policy predictability for capital-intensive electronics and semiconductor manufacturing.
• India's smartphone exports to the US surged over 200% to $12.54 billion between April and November of FY26, despite a 50% US duty.
• The deal, coupled with initiatives like iCET and TRUST, reinforces India's position as a global manufacturing and innovation hub, attracting companies like Apple and Foxconn.
• Industry leaders expect the deal to accelerate semiconductor design, increase domestic value addition, and expand cooperation in AI and advanced manufacturing, aiming for $100 billion in electronics trade.

Why It Matters: The US-India trade deal significantly enhances India's electronics and semiconductor manufacturing, boosting exports and global standing.