Tariffs may increase global production costs, indirectly impacting smartphone prices in India.
India could benefit from supply chain shifts, boosting its 'Make in India' push.
Experts warn scaling semiconductor manufacturing needs major investment and skilled workforce.
US President Donald Trump’s latest tariffs on global imports have raised concerns over rising production costs and supply chain disruptions. While these tariffs majorly impact exports to the US, hinting towards price hikes and recession, industry experts believe that India’s smartphone market and manufacturing operations could face indirect consequences. One of the biggest impact might be seen on the iPhones as most of Apple’s production is from China, Vietnam and India.
According to the experts who spoke with Digit, the direct impact of these tariffs on smartphone prices in India appears unlikely. However, if rising input costs push smartphone manufacturers to adjust pricing globally, Indian consumers may eventually see a price hike.
“Given that the Trump-era tariffs are primarily aimed at exports to the US, the direct impact on smartphone pricing in India appears limited. However, in the unlikely case of these tariffs driving up input costs for OEMs, there exists a potential possibility of cost pass-through to consumers, which could exert upward pressure on prices over time,” said Prabhu Ram, VP, Industry Research Group, CyberMedia Research.
How will it impact India?
Major smartphone brands including Apple, Samsung, and Xiaomi outsource the components from different countries like China, Vietnam, and Taiwan which are now hit with additional 34, 46, and 32 per cent tariffs, respectively.
If production costs rise significantly due to these tariffs, brands could balance the losses by adjusting prices across various markets, including India. It could majorly impact premium smartphones, where pricing is already sensitive.
The US tariffs could indirectly accelerate India’s manufacturing operations as China, Vietnam, and Taiwan are facing massive tariff hikes. Given the situation, India can position itself as an attractive alternative for companies looking to diversify supply chains.
The Indian government’s Production Linked Incentive (PLI) scheme has already drawn investments from major smartphone makers, and these new tariffs could push companies to expand local manufacturing even further. However, industry experts caution that while India has made progress, the challenges remain.
“The ripple effects of the latest tariffs could add fresh momentum to the ‘Make in India’ initiative. However, to fully capitalize on shifting global supply chains, India must seize the moment by doubling down on policy reforms and accelerating its infrastructure push,” Prabhu Ram added.
Semiconductor industry ‘might’ see a boom
Semiconductor production has been a hot topic globally with India constantly pushing the Make-In-India approach. Major companies like NVIDIA, Intel, AMD, and Qualcomm have pushed the R&D and validation operations in India but large-scale chip manufacturing still seems to be far away.
If the US imposes tariffs on semiconductor imports in the future, India’s electronic manufacturers could face higher costs for critical components, making local smartphone production a challenge.
Looking at the positive side, these tariffs could push investments into India’s semiconductor ecosystem, potentially leading to the establishment of chip assembly and fabrication units in the country. However, experts believe that government support, partnerships, and policy reforms will play a key role.
“India has been aggressively pushing for semiconductor self-sufficiency, and tariffs on China and other Asian players could accelerate investment in Indian chip design, OSAT, and eventual fab construction,” said Tarun Pathak, Research Director at Counterpoint Research.
“However, scaling up semiconductor manufacturing is easier said than done. The industry requires massive capital investment, advanced technology transfers, and a highly skilled workforce. If India can overcome these challenges, it could position itself as an alternative hub for chip assembly and manufacturing — potentially gaining from the supply chain realignment triggered by US tariffs,” he added.
“On the downside, India’s electronics manufacturers could face higher costs if semiconductor tariffs are introduced later. The country must act quickly to ramp up domestic production to avoid long-term reliance on expensive imports,” he cautioned.
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Ashish Singh
Ashish Singh is the Chief Copy Editor at Digit. Previously, he worked as a Senior Sub-Editor with Jagran English from 2022, and has been a journalist since 2020, with experience at Times Internet. Ashish specializes in Technology. In his free time, you can find him exploring new gadgets, gaming, and discovering new places. View Full Profile
