The industry said India’s import of ICs (integrated circuits) from the US soared more than fourfold to $505.21 million this fiscal year as of November, from $105.46 million in FY24, while smartphones have emerged as India’s top export commodity to the US, aided by the PLI scheme in mobile phone manufacturing. They added that with India’s strategic pivot away from Chinese suppliers, there is further scope to scale up imports of US semiconductors, and in parallel, export more finished electronics to the US.
“The Trump administration presents an opportunity for us to expand exports to the US to a level of $500 billion and overall trade to $750 billion by 2032. This is a very crucial time wherein many critical decisions will be made by the Trump administration and India should put forward its best foot,” the industry said in a letter.
India has also systematically barred Chinese companies from bidding for government contracts, allowing US companies to seize the newly-created opportunities.
New Delhi has also deliberately excluded major Chinese brands from the high-stakes PLI scheme for large scale electronics manufacturing, ensuring US and other non-Chinese companies to scale up manufacturing.
To further strengthen ties between India and the US, the industry sought enhanced market access for US products through tariff rationalisation and simpler regulations for critical US exports, alongside encouraging US semiconductor and electronics makers to set up advanced packaging, testing, or fab facilities in India supported by PLI schemes.
