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US-China Tariff War: India Gains Ground Amid Challenges
Sentiment: NeutralHigh Priority
What Happened?
India's smartphone exports to the US surged 86% in 2025-26, reaching nearly $20 billion. However, India's trade deficit with China hit a record $112 billion, raising questions about its role in the US-China tariff war.
Key points
- US imports of Indian smartphones rose 86% to nearly $20 billion in 2025-26.
- India's trade deficit with China reached over $112 billion in the same year.
- By mid-2025, Indian-made devices accounted for 44% of US smartphone imports.
- The production-linked incentive scheme has created over 1.43 million jobs.
- India's electronics imports were $116 billion in 2025-26, more than double its exports.
- India relies on China for over 65% of critical drug ingredients.
Key insights
- India's rapid increase in smartphone exports may attract more foreign investment.
- The reliance on Chinese components could hinder India's long-term manufacturing independence.
- India's trade policies may need adjustment to balance security and economic growth.
Why it matters
India's growing smartphone exports could enhance its economic position in the US-China trade landscape.
Source
Times Now
