Explained: How India will benefit from US-China tariff war
The US-China tariff war has left an interesting ripple effect— while the conflict is heating up on one front, it seems to be creating opportunities on another.
Several Chinese electronic manufacturers are offering discounts of up to 5 per cent to Indian companies as trade tensions between the US and China escalate, according to a report by The Economic Times on April 10.
Here are a few key takeaways from the situation:
Short-term price drops in India
Thanks to surplus inventory in China and fewer buyers in the US (due to the heavy tariffs), Chinese component manufacturers are offering up to 5 per cent discounts to Indian buyers.
That could mean slightly cheaper phones, TVs, refrigerators, and other electronics for Indian consumers soon — especially as Indian companies are reportedly considering passing the savings along.
Strategic advantage for India
India’s non-retaliation has worked in its favour. With the US offering a 90-day tariff pause for countries that didn't respond with tariffs of their own, Indian firms are in a sweet spot. Cheaper imports from China and no added tariffs from the US make for a good trade window.
Boost for 'Make in India'
The timing also aligns well with India’s newly announced Rs 22,919 crore PLI scheme, which is designed to boost domestic production of electronic components. Between cheaper raw materials and government incentives, Indian manufacturers might have a solid runway for growth — potentially even positioning themselves as a more independent and competitive electronics hub.
Global supply chain realignment
What’s playing out is also a glimpse into how global trade tensions can reshuffle supply chains. With China looking for alternate markets and countries like India emerging as viable partners, we may see long-term shifts in who trades what with whom.
